Considering how UNG has been trading in the past few months, this weeks trading was "relatively" stable. This is evidenced by the width of its Bollinger Bands which are tighter than normal. Additionally, UNG is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.
UNG's MACD is indicating a weak bearish signal. Although the indicator is above the critical level of 0, which implies that the underlying moving averages are bullish, the MACD has crossed below its 9day moving average or signal line. This suggests that positive momentum has begun to slow.
On Friday one of our favorite buy/sell indicators, the Parabolic Sar, showed the UNG closing above the trigger point for the Parabolic SAR and is currently registering a bullish signal. The current Significant Point, below which a reversal to the bearish side would occur, is 10.99.
The Stochastic Oscillator is registering a bearish signal as the %K is below the %D. However, UNG is neither overbought nor oversold.
The RSI is currently at 46.56%, just below the critical 50% line which indicates that the stock is neither overbought nor oversold. Keep an eye on the trend of the RSI to see if the internal strength of UNG is improving or weakening.
Smart Scan Chart Analysis of UNG
Our "Smart Scan" technology shows a strong downtrend in place and that downtrend looks to continues negative longer term and for this market to remain weak. If trading this strong Downtrend make sure to use tight money management stops. The triangle Smart Scan is showing indicates the presence of a very strong trend that is being driven by strong forces and insiders.
Based on a pre-defined weighted trend formula for chart analysis, UNG scored -90 on a scale from -100 (strong downtrend) to +100 (strong uptrend):
+10......Last Hour Close Above 5 Hour Moving Average
-15......New 3 Day Low on Thursday
-20......Last Price Below 20 Day Moving Average
-25......New 3 Week Low, Week Ending October 17th
-30......New 3 Month Low in September
-90......Total Score
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