The decline of USD is one factor in rise of commodities epecially those priced in USD. But UNG is showing divergence. See the chart of Crude Oil, USO daily, UNG daily and UNG hourly. Crude oil is showing more strength than Natural gas. UNG did break out of the downward channel and as expected is trying to test the support at the upper end of the channel. The daily candle on UNG is a doji; market is trying to figure out its stance. This doji comes with a gap down. Morning Star pattern could be in the making; we will know when the market opens! If Morning Star is seen here, the stance will be near term bullish even though the dollar decline may pause soon.
Otherwise, this divergence in UNG means to take profits in USO!
UNG hourly
Notice the doji on daily candle.
UNG daily
USO has broken resistance of the ascending triangle and may test that support now.
USO daily
Crude broke out of the resistance level. A test of support will be the logical thing but markets have their own logic !
Crude Continuous Future
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