UNG ends the day indecisive
United States Natural Gas (UNG) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
UNG ended Wednesday at 23.17 losing $0.64 (-2.69%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (UNG as at Feb 13, 2019):
Wednesday's trading range has been $0.45 (1.94%), that's below the last trading month's daily average range of $0.85. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UNG.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Southern Doji which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Doji showed up on January 3rd, UNG gained 3.63% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 24.15 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 22.73 where further sell stops could get activated. 2018's low at 21.56 is within reach and we might see further downside momentum should the ETF break out beyond.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for UNG. Out of 729 times, UNG closed lower 50.21% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 57.48% with an average market move of -1.32%.