So You Think It's Time to Buy UNG? Let's go to The Chart!

In all of my years of trading I have never seen so much attention given to natural gas by the retail investor. Nat gas has been trading at historic low prices recently so it must be ready to skyrocket, right? Well for you traders out there that like me are old enough to remember the sugar market of many years ago, you have to admit natural gas and especially UNG is starting to show some similarities.

So where is UNG headed? Let's see what our MarketClub tools tell us....

UNG Smart Scan Chart Analysis is showing a downtrend with Up arrow, meaning there is some near term rallying power. However, this market remains in the confines of a longer term downtrend Downtrend, trade with tight money management stops.

Based on a pre-defined weighted trend formula for chart analysis, UNG scored -75 on a scale from -100 (strong downtrend) to +100 (strong uptrend):

-10.....Last Hour Close Below 5 hour Moving Average
-15.....New 3 Day Low on Thursday
-20.....Last Price Below 20 Day Moving Average
+25.....New 3 Week High, Week Ending October 3rd
-30.....New 3 Month Low in September
-75.....Total Score



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UNG - Natural Gas Fund to Suspend Offering New Units

United States Natural Gas Fund, the world’s largest exchange traded fund in the fuel, said it will suspend offering new units after winning federal approval to issue up to 1 billion new shares. The approval will come today from the Securities and Exchange Commission in Washington, the fund said in regulatory filing. “Our attorneys have told us the prospect us has become effective this morning,” John Hyland, chief investment officer of the Alameda, California-based fund, said in a telephone interview. The fund said it will suspend offering “creation baskets,” which are blocks of 100,000 units, because of proposed regulatory.....Complete Story