What's the similarity between 3 year chart of United States Natural Gas (UNG) and 5 day chart of S&P 500 (SPX)? Their shapes!
3 year chart of UNG
5 day chart of SPX
SPX went through a bowl shaped bottom in last 5 days, UNG is about to finish 50% of very similar bowl shape bottom, the difference is that the time spent by UNG for less than 50% of its bottom is 2 years, while SPX 5 days to finish its bottom.
Implication: UNG may hit $60 in 2 years, sometime in 2012! 10 times current price in 2 years.
In my gut feeling, even though UNG has hit its bottom (indicated by higher low pattern, flattening rate of change, rising 50 dma), natural gas price may still be bound to hit last year low again later this year before it really bottoms.
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