UNG: Share Price Gassing UP

I have two standout Fibonacci price cluster zones in UNG (United States Natural Gas Fund, $21.20, up $0.05. 12-month range $15.18 to $24.09) to watch for a possible buy entry.

The definition of a price cluster is the coincidence of at least 3 Fibonacci price relationships that come together within a relatively tight range and they identify key support or resistance decisions.

CB 5 13 ung

The first support comes in at $20.74 – $20.93.  The second zone that I would PREFER to see tested comes in at $19.94 – $20.21.  As long as price remains above either of these zones, I will be looking to take buy triggers against it with my risk defined below the low end of the price cluster zone.

If there are no entry triggers, don’t take a trade!! A hold above one of these zones targets the 25.00 area on the upside.

Implied Volatility with 21-strike calls in June & July options virtually the same @ ~31.5%.  Premium received to sell 24 or 25-strike call as part of vertical spread not there.  Bullish strategy could perhaps be half position in shares and other half in long at-the-money calls.

  • Hi Carolyn, i love your stuff and usually read and not comment. But I have a question re: TSLA. are you looking at it and would you be selling premium now?

    • Actually I have not looked at TSLA….a little crazy here with a seminar in Chicago!

      • Ok Carolyn. Thanks for taking the time out to respond. Much appreciated 🙂