Nat Gas About To Pop

Nat gas (UNG) has recently caught my attention.  While it was in a significant downtrend for the better part of a year it has recently been consolidating right under the $20 level.  A look at the daily chart shows a long move down and then recently a sideways consolidation pattern.  While this is typically a continuation pattern I am beginning to believe think that the next move may be up rather than an extension of the previous down trend.

• Over the last two weeks there been significant support above $18 and significant volume.
• The $20/$20.50 level has been tested multiple times and the more tests it undertakes the more likely it is to break.
• Both the 20-day and 50-day moving averages have turned upwards and UNG is trading above both

http://www.themarketguardian.com/2012/07/nat-gas-ready-to-pop/