Taking it From One Decision To The Next in UNG

Late July UNG (United States Natural Gas Fund, $18.59 – up $0.01) slammed into some healthy resistance at the 22.59-77 area that was a bit more obvious on the weekly chart. We’ve seen a healthy decline since then. Now although it is possible that the decline from the 7/31 high continues, I have to point out an interim decision here where UNG may find support. It comes in with a Fibonacci price cluster zone that comes in between the 17.37-18.34 area. 

The way to look at this is IF I was short, I would want to tighten up stops, just in case a buy trigger against this support fires off. If I was flat, I would patiently wait for a buy trigger and define my risk below the 17.37 area. 

Note that a hold above this zone would eventually target the 23.52 area. A violation of this same key zone would vote for a continued decline towards the 1.272 extension at 12.03. 

 

Bottom line, UNG is at an important crossroads. Let’s see what the market does around this key decision and trade accordingly.  

 

Carolyn Boroden

www.fibonacciqueen.com

twitter: Fibonacciqueen