An oversold mfi is a bull signal. The macd remains in bear territory but this morning rose toward the zero-line.
Yesterday's low point, $8.63, put UNG slightly aove the low of $8.50 set on Dec. 3.
In the longer run UNG has been on a massive slide from $63.89 in July 2008 down to its current position below $9, an 87% slide.
In that period, the mfi has moved into oversold territory six times -- this time is the seventh, with only minimal effects on the price.
So, with my deep respect for the broad sweep of history, I'm saying, not a bull trade for me.
But, let's spy out the terrain.
Support runs between $8.50 and $8.65 or so, near-term resistance around $9.50, with lots of congestion all the way up to $11.
Even without that long-term history, I'd still be reluctant to play this very congesed chart.
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Topics: United States Natural Gas Fund.
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