UNG can it rally from another monthly low ? LONG
UNG on the daily chart has put in another monthly low similar to that of December after
falling from a double top in early January. Gas production may be low. Storages may be
depleting as demand is steady even in mild winters. The indicators show mild bullish
divergence on the zero-lag MACD and volatility compression on the Fibonacci levels with low
volumes overall and selling predominating. RSI levels are in the upper 40s and staady.
I see this as a long trade setup targeting first 22 near to the midline of the Fib bands and
then 24 at the Fib retracement level for the trend down from October into late December.
The stop loss is about 2% at 19. R:r 2.6 : 0.4 or about 6.
falling from a double top in early January. Gas production may be low. Storages may be
depleting as demand is steady even in mild winters. The indicators show mild bullish
divergence on the zero-lag MACD and volatility compression on the Fibonacci levels with low
volumes overall and selling predominating. RSI levels are in the upper 40s and staady.
I see this as a long trade setup targeting first 22 near to the midline of the Fib bands and
then 24 at the Fib retracement level for the trend down from October into late December.
The stop loss is about 2% at 19. R:r 2.6 : 0.4 or about 6.
Trade active:
Trading sideways in narrow range.
Trade closed: stop reached:
Ouch. Closed 90% of the position the rest remain to countertrend and reverse and claw back some of the losses.
Trade active:
XNGUSD rallying in an ascending channel long position adds when at lower trendline.
