Natural Gas Stocks Are Stuck In No Man's Land
The Unites States Natural Gas Fund(NYSE:UNG) has taken another leg down
since June 15th, 2010. On August 9th the popular ETF triggered a bearish
head and shoulders top pattern and has declined sharply from that date.
The ultimate target for that bearish pattern is around $5.60. However,
these patterns will have bounces along the way and do not go straight
down. In the near term the UNG has bounced slightly higher over the past
five trading sessions from an oversold technical condition. The UNG
will have some minor daily chart resistance around the $6.84 level.
Devon Energy Corp.(NYSE:DVN) is a leading natural gas stock that is
stuck in a tight trading range. The high end of the range for Devon
Energy is around the $65.00 level. The low end of the trading range for
Devon Energy is around the $59.00 level. The current pattern on the
daily chart is signaling some short term support for the stock around
the $61.00 level. Please remember that this is a range bound stock at
this time.
Chesapeake Energy Corp.(NYSE:CHK) looks very similar to Devon Energy
Corp. as this stock remains in a tight trading range. The high end of
the range is around the $22.50 area. The low end of the range for
Chesapeake Energy Corp. is around he $19.50 level. The stock is still
trading solidly below it's daily 200 moving average and that is
generally a sign of weakness. However, at this time this stock is in the
middle of no man's land.
since June 15th, 2010. On August 9th the popular ETF triggered a bearish
head and shoulders top pattern and has declined sharply from that date.
The ultimate target for that bearish pattern is around $5.60. However,
these patterns will have bounces along the way and do not go straight
down. In the near term the UNG has bounced slightly higher over the past
five trading sessions from an oversold technical condition. The UNG
will have some minor daily chart resistance around the $6.84 level.
Devon Energy Corp.(NYSE:DVN) is a leading natural gas stock that is
stuck in a tight trading range. The high end of the range for Devon
Energy is around the $65.00 level. The low end of the trading range for
Devon Energy is around the $59.00 level. The current pattern on the
daily chart is signaling some short term support for the stock around
the $61.00 level. Please remember that this is a range bound stock at
this time.
Chesapeake Energy Corp.(NYSE:CHK) looks very similar to Devon Energy
Corp. as this stock remains in a tight trading range. The high end of
the range is around the $22.50 area. The low end of the range for
Chesapeake Energy Corp. is around he $19.50 level. The stock is still
trading solidly below it's daily 200 moving average and that is
generally a sign of weakness. However, at this time this stock is in the
middle of no man's land.
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