Natural gas has been enjoying a nice advance so far in 2013 even outpacing the rally we’ve seen in U.S. equities. However there appear to be some headwinds moving in on nat gas ($UNG). This is the topic of my TraderPlanet piece for this week.
Here’s a blurb:
As the chart below shows, we have a falling trendline that was created from the lower lows in October and November of last year that would act as resistance just above the $21.50 level. We have another trendline that started in April of last year that become resistance during the first month of 2013 and is coming into play near $21.50 as well. Looking at the natural gas market Monday morning it appears we will open above this level. I’ll be watching for a close on strong volume in order to trust any form of a breakout.
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