Friday, July 24, 2009

Nat Gas - Next Leg Lower?

After yesterday's big down day (-5%), it looks like nat gas has set a significant top for now. The question is, is there a next leg lower? Or will nat gas start to trend up for the first time this year? I think a break above yesterday's high will be a signal to get long UNG. Till then we assume that this is headed lower since that is the trend.

I actually think there is a significant chance that nat gas has formed a nice double bottom, but for now I have sold my UNG for a gain, and would not mind re-entering at higher prices.