UNG - Natural gas fails to hold support

Despite the main US capital markets starting the week in a moderately bullish mood, Natural gas opened sharply lower, taking out the key support of $3.70, settling -2.4% @ $3.67. The ETF of UNG closed lower by -2.5% @ $19.73. Outlook is bearish.


UNG, weekly

Summary

*first a look at Nat' Gas, weekly cycle

We have a very large multi-month bear flag that stretches all the way back to June. With the break into the $3.60s, there is no support until 3.30/20.

I do not expect the $2s... not least with winter not far off for the northern hemisphere.