The natural gas inventory data did not have much of an impact on the ProShares Ultra Long Oil & Gas ETF (AMEX: DIG), which appears to be carving out a new trading range between 84.00 and 80.50, after emerging yesterday from a lower trading range between 76.00 and 80.00. The higher range represents the next phase of the basing attempt that has been in progress for the past week. A sustained hurdle of 84.50/70 is needed to trigger additional upside potential off of the base into the 89.00-90.00 target zone. Conversely, a breach of 80.50/00 near-term support will begin to compromise the efficacy of the developing base pattern.

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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