Natural Gas Review: $UNG

Published 11/07/2018, 08:21 AM
Updated 07/09/2023, 06:31 AM

Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

Natural gas has realigned above a bullish reversal (see Matrix). Smart money realizes that short-term consolidation (flag, pennant, etc) is likely after a strong breakout. Watch for one to form.

The longer UNG holds above lower weekly reversals, the more likely it will test the higher ones. Trading requires patience and discipline. The invisible hand doesn't scream buy or sell - only the talking heads do that and they're rarely right.

I said awhile back that NG was one of the strongest plays in the Matrix. Nothing has changed. Don't blindly sell or buy. Follow alignment, time, distribution of leverage, and reversals. In other words, use the Matrix.

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