{"id":2719,"date":"2013-04-08T07:05:11","date_gmt":"2013-04-08T11:05:11","guid":{"rendered":"http:\/\/www.morpheustrading.com\/blog\/?p=2719"},"modified":"2022-04-06T15:07:25","modified_gmt":"2022-04-06T19:07:25","slug":"ung-natural-gas-breakout","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/ung-natural-gas-breakout\/","title":{"rendered":"Don’t Miss This Explosive Breakout In US Natural Gas Fund ($UNG)"},"content":{"rendered":"

In\u00a0this April 2 blog post<\/a>, we explained in detail how to trade a bullish technical chart pattern known as the “cup and handle.” At the time,\u00a0United States Natural Gas Fund ($UNG)<\/strong>\u00a0was still forming the “handle” portion of the pattern. However, since the ETF broke out last Friday (April 5), $UNG is now in play as a valid swing trade entry. Here is a follow-up look at the current price action…<\/p>\n

In our initial analysis of $UNG, we said, “While forming (the handle), price action will typically slope lower. In the case of $UNG, even an ‘undercut’ of the March 25 low and 20-day exponential moving average would be acceptable.” On April 4, an “undercut” of the March 25 low and 20-day EMA is exactly what happened. The following day, $UNG jumped 4.5% and broke out above the high of its 3-week range. The move was also confirmed by an impressive volume spike. This is all shown on the daily chart below:<\/p>\n

\"$UNG<\/p>\n

Since this ETF closed only slightly above the highs of its range, it is not<\/em> too far extended to buy near the current price level. As such, regular subscribers of our nightly ETF and stock picking newsletter<\/a><\/strong> should note we have listed this trade setup as a new potential buy entry. Our exact trigger, stop, and target prices for this ETF swing trade can be found in the “watchlist” section of today’s report.<\/p>\n

One of the things we like about the $UNG trade setup is that it is a commodity ETF. Since our market timing model is now in “sell” mode, we are generally avoiding the long side of the market. However, one exception is ETFs with a low correlation to the direction of the stock market. Commodity, currency, fixed-income, and international ETFs are all such examples. If you are unfamiliar with our rule-based system for timing the market, click here<\/a> to learn more.<\/p>\n

Interested in improving your trading education? If so, sign up to receive our FREE Top 5 Trading Rules For 2013 And Beyond<\/a>.<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

In\u00a0this April 2 blog post, we explained in detail how to trade a bullish technical chart pattern known as the “cup and handle.” At the time,\u00a0United States Natural Gas Fund ($UNG)\u00a0was still forming the “handle” portion of the pattern. However, since the ETF broke out last Friday (April 5), $UNG is now in play as […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-2719","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/2719","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=2719"}],"version-history":[{"count":1,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/2719\/revisions"}],"predecessor-version":[{"id":11612,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/2719\/revisions\/11612"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=2719"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=2719"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=2719"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}