Thursday, July 7, 2011

Natural Gas ETF (UNG) Channel Break **REQUEST** 7/7

To the left is a daily chart of UNG, a natural gas bullish ETF. We can see that back in the late part of last year and early part of this year we were forming a bullish channel (in yellow) that eventually broke hard to the downside. After making some new lows it started back up into a bullish channel (in green), but this time a little less dramatic of an angle on the channel. I think I might of missed the boat on this trade as it seems to have already broken out, but still might not be a bad trade if there is any pullback to get in.
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2 comments:

  1. AnonymousJuly 12, 2011 at 2:12 AM

    Thanks for the UNG post Sandwich. I'm just wondering how you determine where to put your channel lines, and how you determine a formation is a channel vs. some other type of formation? To me the UNG formation looked like a right-angle broadening formation as described by Pring in 'Technical Analysis'. It looks like your analysis is proving to be more accurate, so I'm trying to understand what your reasoning is in such situations so I can improve my ability to see patterns.

    Thanks,

    Ozzy

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  2. AnonymousJuly 12, 2011 at 2:43 AM

    Sandwich,

    Also wondering if you would recommend any books on trading that you have found particularly helpful.

    Thanks again,

    Ozzy

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