Back on June 24, in this blog, I recommended UNG be purchased on the pullback from 11.90 to around 10.60, where it was that day. I also said it could go to 11.36 quite easily. Guess where it is today–11.36!
I must admit, I thought it would happen more quickly, and for that I say “mea culpa”. However, if you hung in there this long, you deserve to take your profit.
Aggressive traders can stay in it awhile longer, as the MACD and 14 period RSI are still on buy signals. But for me, it’s time to turn off the gas. I don’t like how the stochastic and 2 period RSI look, and so if you bought it that day when I recommended it, take your 7% profit, and let’s look for another trade to unfold.
Chart courtesy of stockcharts.com
I think there is some resistance at 11.60, and I’m just not too thrilled with the candlestick pattern of the last two days. More bullish folks may say that it’s just consolidating after the big gaps up, and they may be right.
But I’m now looking for the next big thing….
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