The use of natural gas has become a hot button in the United States as bans are debated or enacted in certain states and cities. Whether you think this is good or bad, it’s news. A subscriber recently asked us to review Natural Gas (UNG). Today looks like a good day given the huge -6.48% drop.
We doubt the news will cause any problems for UNG. It does not matter. The technicals on the weekly chart are looking terrible. The price fell more than 79% from the 2018 high to the all-time low. On the downside, it has rallied over 300% from that all-time low. All-time lows are about to be reached. Most likely, our subscriber is watching this one with the thought of making a possible big win if it reverses. We get it, but beware, it still has another 18% to lose before hitting an all-time low.
Unfortunately, there is no good news on the technical horizon. The weekly RSI is now below 20. It is oversold but it is still pulling back. The weekly PMO is now in the oversold territory but is showing no signs of an imminent reversal. Worse, the StockCharts Technical Rank (SCTR) is at 0%. That said, there is no worse ETF than this one. It’s the worst.
Conclusion: Natural Gas (UNG) is on the verge of hitting all-time lows. However, it is not yet a reversal candidate. The indicators are terrible and as far as the StockCharts Technical Rank goes, there doesn’t seem to be a worse ETF. Keep it on the watchlist or subscribe DecisionPoint.com package! It’s on our watch list and will alert you if it looks interesting based on a trend reversal based on our indicators. Use coupon code: SAVE50 and get 50% off your first month!
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Erin Swenlin co-founded DecisionPoint.com with her father, Carl Swenlin. She started the daily DecisionPoint blog with Carl in 2009 and now works as a consulting technical analyst and blog contributor at StockCharts.com. Erin is an active member of the CMT Association. She holds a master’s degree in information resource management from the Air Force Institute of Technology and a bachelor’s degree in mathematics from the University of Southern California.
