Nat-gas launched into a 10.5% gain (close to top) at the last session.
The earlier update had identified a reversal:
“At pivots, this price action scenario is nearly always the case.”
There was a good probability of a move and that’s what we got.
Now, typical action under such conditions is to come back (briefly) for a test.
The potential location for that test is on the chart. However, UNG can do what it wants and there’s no guarantee.
Such a brisk up-move move brings in a crowd. We have to figure there were late comers to the breakout.
Those late to the party need to be washed out; or at least frustrated so they’re too quick to exit as the market is rising.
The test location shown may be the area that pushes out the weak.
It may take all day or a couple of days. Look for volume (not advice, not a recommendation) to contract on the test.
Charts by StockCharts