The ETF dropped when it reached the right altitude
The last high was probably an overshoot
It should cut into the year-long advance
I was working on the ETF that tracks crude oil, (USO), and have decided to promote what I had as an alternate count in crude to the primary, that there is one more high needed to complete a five wave sequence up from the low from last year.
The primary hypothesis in Crude is that the 2017 low was a truncated low and that we are now seeing the first move up out of that low. The next move should be a corrective move lower that last at least until May if not continue into October.
The outlook for UNG has not changed over the last few months. It has failed to rally much but then hasn’t fallen either. Still favor a bounce that can test the highs from last year.
Updated weekly chart but very little change from the earlier post here which you should read as a reminder of the possibilities. The most noteworthy difference is that the cycle detection is focusing on a shorter cycle which has the ideal low at the end of September.
We are watching natural gas prices very closely right now. The technical picture makes a strong case to expect a reversal and rally soon.