United States Natural Gas Fund ETF (UNG) breaks down out of a Symmetrical Triangle consolidation pattern yesterday on above average volume. A move through support at $9.22 (bottom of triangle) indicates that UNG may touch previous bottoms and possibly break through thereby continuing its long term downtrend.
A short entry could show up on a bounce back to retest the bottom of the triangle.
UNG Natural Gas ETF – Symmetrical Triangle Continuation
UNG has been forming a bottom that has so far taken the shape of a Head & Shoulders Reversal. This breakdown however, may be indicating this bottom pattern will not be a reversal. A Head & Shoulders Bottom Reversal is invalid until the neckline is broken to the upside. Currently that resistance level would be around $10.33 (www.etftrends.net).
