Monday, March 05, 2012

UNG - Downside Target


UNG was sharply lower today down well over 4% on heavy volume. If you look at the above chart you will notice that UNG has broken down from a descending triangle formation.  The downside target for this pattern is calculated by taking the height of the triangle and subtracting it from the support line. The downside target for UNG is roughly $16.00.

Notice also the expansion in volume that has taken place over the past few weeks. The average volume has easily doubled!  It appears lower prices can be expected for this market in the weeks to come.

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