Warning: Following my trades may be hazardous to your financial health. See Disclaimer.

Friday, April 13, 2012

UNG - Update

First thing one should take note is the strong down trend. Not shown in chart but ADX is at a whopping 41.86 level! The price is currently hugging the lower trend line of the down channel. What caught my attention today was the Fib 123.60 extension level, a level often used by the market for "overshots". Another was volume. Yesterday had a huge shake up, and today a mini-shake down on the 5 minute chart. If I didn't already had 2 positions, I'd be tempted to add here. But note that there is nothing else encouraging about this stock, even the seasonality is off. This is a counter trend play. I am very light even with 2 entries.

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