Trade Idea: Buy UNG ETFThose (c) who participated in the previous buy/long idea where rewarded with the ETF reaching the target and a +24.5% ungeared return in just under 5 weeks. The underlying commodity has since declined significantly and, in my view, offers another opportunity to buy off ''near oversold' levels (via the UNG ETF which is available to trade and offers exposure). The UNG ETF is down by over 55% from it's November swing highs and down by close to 70% from it's August highs. It also trades at 2x it's mean over 200 days (not shown) and is extended well below it's 200-day simple moving average. The ETF has also tested and surpassed it's December 2021 swing lows which could be a false breakdown. In addition, the price is testing the prior breakout level. On this basis, the price appears to trading in an oversold range and may offer an attractive reward-to-risk over the medium term. To account for elevated volatility, my recommended stop-loss is slightly wider than usual. Note that the price may trade lower before consolidating and potentially developing a bullish reversal. Upside gaps at $13.95 and $15.29 could act as potential targets.
