Slam & Test

Like all markets, Nat-Gas (UNG) has its own characteristics.

One of them, is the potential for wild and volatile action during an EIA release.

Taken from comments on October 22nd.

“However, tomorrow is the next release of EIA and potential test. Sometimes it’s brutal, other times it’s not there.“

Moving on a month or so, we can see that type of ‘brutal’ decline; -32.5%, (top to bottom) before price recovered.

Natural Gas UNG, Daily

Nat-Gas (UNG) has penetrated support, rebounded, and now (Wednesday), was testing that action.

It’s important to note, the previous spring set-up (here) resulted in a rally, lasting about six weeks.

Also note:

That rally was somewhat choppy and overlapping which would suggest if we do get another sustained rally, price action may alternate from the last rally’s form (not advice, not a recommendation).

Stay Tuned

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Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

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