Never a dull moment in the U.S. Natural Fund ETF (NYSE: UNG), right? After watching this crazy market for several years, I still don’t seem to appreciate enough the wicked volatility natural gas is capable of exhibiting on a regular basis. Clearly, no resistance or support level is sacred in the UNG. Having said that, however, IF (and it is always a BIG if) the UNG started a new upleg at the April 30 low of 12.69 and ended the initial upmove of the upleg on May 12 at 17.73, then this deep pullback is a gift to would-be bulls.

It is with the foregoing supposition in mind that we add to our long model portfolioposition in the UNG and place stops on the entire position beneath the April low. If my analysis proves correct, then the UNG will pivot to the upside in the upcoming hours and head for a test of 17.73 – on the way to 21.00 thereafter.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of

Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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