Stocks, Sports and everything else Headline Animator

Thursday, March 19, 2009

Great rally in UNG ( Natural Gas )

People, time for some drum beats.
Yesterday I wrote "Check out UNG, natural gas, looks like it has not taken part in the rally yet and might join in. Careful though, why has it not rallied yet? I am a trader so I have bought a few calls."
Today it rallied $2 plus from he lows. Why? how did I know . Well I must say I got lucky. I bought for technicals ( oversold and markets and Oil rallying ). Also I did not make my first buy yesterday I have been buying a bit for the last 4-5 days. So it was a bit frustrating to watch is not rally with the others.
But there was a report out today that showed Natural Gas inventories down. Click here to read that.But in any case , the technicals are what made me buy and what makes me think that UNG has still some room to the upside.
Click here for the daily chart of UNG.
UNG is so oversold even with the markets rallying, that alone makes it a buy.
But oversold alone is not enough as it can stay there.
Note today it jumped on Great volume, 4M shares is its avg volume and today it was almost 19m, that's 400% more. Also the MACD was trending up even as the stock was falling , that's a good indicator.
I sold some of my calls and will hold the rest if they keep showing good relative strength.

Tomorrow is OE ( options exp ) so I expect a rally tomorrow followed by a pullback next week. After the pullback we will see how strong the markets are. Will there be buying on the dips or widespread selling.

No comments:

Post a Comment

About Me

I am into stocks, options, all kinda sports, Music, food, Spirituality etc.
Powered By Blogger