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UNG Natural Gas ETF Breaks Down out of Consolidation

|Includes: The United States Natural Gas ETF, LP (UNG)

United States Natural Gas Fund ETF (NYSEARCA:UNG) breaks down out of a Symmetrical Triangle consolidation pattern yesterday on above average volume. A move through support at $9.22 (bottom of triangle) indicates that UNG may touch previous bottoms and possibly break through thereby continuing its long term downtrend.

A short entry could show up on a bounce back to retest the bottom of the triangle.
UNG has been forming a bottom that has so far taken the shape of a Head & Shoulders Reversal. This breakdown however, may be indicating this bottom pattern will not be a reversal. A Head & Shoulders Bottom Reversal is invalid until the neckline is broken to the upside. Currently that resistance level would be around $10.33 (

Disclosure: no current positions in UNG