Nat gas (UNG) has recently caught my attention. While it was in a significant downtrend for the better part of a year it has recently been consolidating right under the $20 level. A look at the daily chart shows a long move down and then recently a sideways consolidation pattern. While this is typically a continuation pattern I am beginning to believe think that the next move may be up rather than an extension of the previous down trend.
If we zoom in a bit and take a look at the hourly chart we are presented with two scenarios
I’m leaning towards option one but will be waiting for a breakout confirmed with volume in either case.
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