The chart of UNG has taken the very bullish W formation, in this of all markets. From the daily chart (Link 1) you can see the first bottom in August and the second in January, both in the 32-34 zone. Notice that the 50 dma and 100 dma have actually flattened out and are turning up. The stochastics are above 50 moving up and separating.
In the weekly time frame the W is very pronounced and the stochastics though above 50 are moving sideways with plenty of room to go (Link 2).
This is a bear market and going long has not proven rewarding, but this is what we will do. We will take a 1/4 position with a stop @ the 50 day moving average. Buy a small number of shares, and PUT YOUR STOP just under 50 dma or 37.50. Wait for the alert
Link 1: http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=ung&time=8
Link 2:
http://bigcharts.marketwatch.com/advchart/frames/frames.asp?symb=ung&time=8&freq=1
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3 comments:
look at the XLE.. its forming up the "flying W" formation. next week it will reveal itself as to what it is. UNG will be a big winner. I'm also a very slow construction guy with a few highly depreciated rent houses in Texas. Love the blog, keep it up
look at XLE>> next week the W formation will be a bit more defined.
If you want to off set further depreciation on your property thake a look at SRS ultra short real estate index.
right on about XLE give it some time to set up.
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