UNG on the upswing?

27 ธ.ค. 2024

UNG has now closed above the 200 Simple DMA for the last five days; a feat last achieved over two years ago.

As well, the 200 SDMA is also turning green, indicating possible long-term bullish momentum.

Next resistance is around 17.00 at previous swing high. A breach above that should clear the way to price discovery at 21.00 area.

31 ธ.ค. 2024

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UNG gapped through nearest resistance at 16.81 from October 2024. Maintaining current UNG long with a write-call hedge, I expect target of ~21.00 to be hit in the coming month, however, a period of consolidation can also be expected over the coming week.

I would like to see a retest of the 200 SDMA currently at around 15.28 at which point I would add more UNG.

Fundamentally, conditions also favor current price increase over the longer term. One reason is the presence of a polar vortex that was attributed to the sudden rise in NG future prices this week. A second reason is that it now appears the USA will increase LNG shipments to Europe over the coming months. (Recently a Russian LNG carrier could not sell its cargo of LNG. Countries buying Russian LNG are now concerned with the reaction of the incoming Trump admin towards countries that bypass the LNG sanctions against Russian oil/gas).