Let's notice that the action during November in the US Natural Gas Fund ETF (AMEX: UNG) has created a potential double bottom formation. That said, however, purely from a technical perspective, the price structure must hurdle and sustain above 28.70 to trigger the upside potential of the pattern, which would project to the 31.00 target zone. A climb above 28.70 also will position the price structure to break the back of the November downtrend, now at 29.25.

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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