Natural gas prices seemed to be ready to rally in November… but then came a hard price reversal lower in early December.
That reversal, when studying the United States Natural Gas Fund ETF (UNG), was an island reversal.
A lone daily candle gapped higher and ran a bit before coming back down toward its original opening price. Then a gap lower the next day.
Ever since, price has simply fallen on the weight of negative momentum. And natural gas is now nearing an area of critical support where UNG has found its recent lows.
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$UNG Natural Gas ETF Chart
The technicals are not pretty. Bulls hope price firms up here.
Twitter: @andrewnyquist
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
