Natural Gas Update: A Gain of 89%

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Includes: UNG
by: Doug Short

By Chris Kimble

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Natural Gas recently broke above its multi-year falling channel and above its 50% Fibonacci retracement line and now is breaking above another resistance line at (2) in the chart below.

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(Click to enlarge)

Can "Inverse Head & Shoulders" be powerful and rewarding? I shared the chart below with Sector Commodity Sentiment members last year.

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(Click to enlarge)

This chart reflected a bullish inverse head & shoulders pattern with only very few investors bullish in June of 2012 (see post here). The Power of the Pattern suggested that a powerful bullish set up was at hand. The result? Natural Gas is up 89% since the posting!

If you are an investor looking for research that can help spot favorable patterns when sentiment is at extremes, check out our Sector/Commodity Sentiment research report that is available by subscription. (Sector report here).