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United States Natural Gas Fund (UNG) Has been Surging After We Predicted a Price Bottom

United States Natural Gas Fund $UNG was completing a price bottom last week, and we predicted that it would do so in 2018. This materialized much faster than we thought as price surged from around $26-$27 to about $33 in a little over a week. 

UNG Daily Chart

(click to enlarge)

Bulls Take Over:
- As we can see on the daily chart, price action was bearish entering 2018, but stabilized during the year. 
- The bullish signs actually started when price started to trade mostly above the cluster of 200-, 100-, and 50-day simple moving averages (SMA). 
- So, from September, UNG was starting to percolate.
- However, the 2018-high around $27.50 was a critical resistance and price did still under this level in October.
- The November bullish breakout and continuation officially makes 2018 price action a price bottom.
- Then, the market wasted no time pushing UNG up above where I thought would be the next level of resistance around $30.
- Price has broken above $30. Let's take a look at the weekly chart.
Next Target:
- Price is testing the 200-week SMA around $30. There might be some consolidation here. 
- But if price can eventually anchor above $33, the next high will be the 2016-high around $38.50.
- I think before we get there, we will see price pull back. 

UNG Weekly Chart

(click to enlarge)

Note that as UNG is rising (natural gas price is rising), oil price is plummeting. The USDWTI for example has fallen from above $75 in late September to around $55 a barrel now in mid-November. 

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