UNG's falling wedge usually breaks upward toward higher levels, though it can go down instead. If UNG falls to its prior low near 9.60 or 9.70, and especially to 9.25 or $9, he would buy UNG options heavily; until then he just watches.
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I'm going to look at the United States Natural Gas Fund (UNG) as a vehicle for trading natural gas , and you can see that we are in a "falling wedge" pattern. The descending wedge usually breaks upwards, and this does not happen every time, of course, but it is the usual pattern.
Most of the time, that's what I mean . This does not mean that it cannot go down. I am not saying that it cannot go down . What I'm saying is that, most of the time, it will go upwards. It will move to higher levels.
So, if we start to test, we don't necessarily have to test this lower trendline, but if we start to play around this previous low, at around 9.60 or 9.70, and especially if we start to drop to around 9.25 or even $9, then I would look to add some UNG options.
I'm going to buy a lot, guys. I will download it. We have traded UNG natural gas before, and now, I am very excited. I'm looking forward to the next deal. So, this is what I'll be watching for if this tends to go down a little .
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