A near-term reversal in trend direction has been identified.
Yesterday's up-gap spike to new highs above 55.00 in the U.S. Natural Gas Fund ETF (AMEX: UNG, Bullboard) followed by a close near the low of the session, which then was followed by a gap-down opening this morning and a plunge to the 52.00 area, not only satisfied a multi-month upside swing target off of the September–December 2007 base formation, it also left behind (for now) an exhaustion Island Reversal at the very top of the advance. Usually, such an exhaustion signal identifies a significant price peak and a near-term reversal in trend direction. Such is the case in the UNG, which now points lower towards 50.00 next, on the way to 48.00 thereafter.
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