Natural Gas prices have fallen of considerably today, after a wide range of trading yesterday. We’d previously listed $22 as the first likely resistance point after UNG broke $20 with fervor in July, and sure enough, it crossed $22 just long enough to bounce off the 200-day moving average and come back down to earth. Now it’s sitting on the 50-day moving average, with the 20-day moving average splitting the difference between the two. This is an interesting spot, as these significant averages haven’t been this close to each other in a long time. Anticipate a continued drop in UNG, but we’d be surprised to see it last. Still, a drop to $17 isn’t out of the question here. If you don’t have a position, consider waiting a little longer if you want to get bullish. If you’re bearish, you may want to stick your toes in the water with a small short-term position. 

Natural Gas prices have fallen of considerably today, after a wide range of trading yesterday. We’d previously listed $22 as the first likely resistance point after UNG broke $20 with fervor in July, and sure enough, it crossed $22 just long enough to bounce off the 200-day moving average and come back down to earth. Now it’s sitting on the 50-day moving average, with the 20-day moving average splitting the difference between the two. This is an interesting spot, as these significant averages haven’t been this close to each other in a long time. Anticipate a continued drop in UNG, but we’d be surprised to see it last. Still, a drop to $17 isn’t out of the question here. If you don’t have a position, consider waiting a little longer if you want to get bullish. If you’re bearish, you may want to stick your toes in the water with a small short-term position. 

Tags: ung /ng natural gas gas technical analysis moving average support resistance channel