Chart updated with additional supports
I’m going to use the weekly UNG chart for the big picture and then switch to the daily natural gas futures chart for the fine details.
UNG has moved up to test the first weekly resist in what looks like an impulsive move and is now retracing. Will be watching 19.98 and 19.21 as possible wave ii support.
Opportunities nearby for bulls
This is a quick update for newsletter readers to show how the natural gas forecast is holding up. (Quick answer: it’s working well.)
I have been looking for a possible wave (v) low in UNG for the last couple months and it looks like we may have one that sticks. It has spent the last few weeks up from a test, and brief poke under, support at 18.10. Goal now is to establish a five wave move up for an initial impulse up. Resist at 21.81 and 22.89 on the weekly chart. I’m working on the premise that the dominant weekly cycle is inverting and thus for a net rise into the end of the year.
When I last wrote on UNG, I was looking for a possible truncated wave (v) low in conjunction with a projected cycle low for the year. Prices did in fact climb but was rejected by initial resist at 23.31. Despite that, the overall forecast for a possible low for the year in development is the same.
It might be making a durable low