[Edit 11:23am] Going with the standard image without the EW blather. Same projections
Natty gas needs to stay above the lower trend line. It is below all moving average, which still is considered bearish. I am anticipating a reversal, perhaps. I would like to see a decent move higher, like today :) However, I do have the 15 calendar spread so I am protected. If it does take off I will buy back the Jun 15's. The weekly MACD (not shown) has been rounding up nicely. We've seen a positive momentum divergence on the daily charts for quite some time, but that didn't stop prices from cratering. Last summer UNG sat at a lofty 62.50. One year, one commodity bubble burst, overcapacity and a possible supply glut slammed this puppy down below 12.50. It is the later issues that has kept a lid on the price of natty gas even while every other commodity has doubled.
I would like to see the MACD cross the zero line it short order. It would help if Goldman Sachs would lease some natty gas storage and upgrade the sector (tongue in cheek). I'm guessing there just isn't enough secondary offerings to be had in that area, therefore less fees for them when they underwrite the offerings after announcing they are on the convinction buy list. Sort of like they did with REITard Simon Property Group just before they tapped the market with not one, but two, secondaries. Any guess who was underwriting those offerings?
Disclosure: Calendar Spread UNG 15 Calls Jun/Jul
Disclosure 6/10: Bought back Jun 15's for 50% gain
