UNG – Return to the Falling Wedge

UNG failed the breakout from the channel and returned to the falling wedge. $9.00 is a critical support level and if UNG bounces back from this support, a double bottom will be formed. If this support is broken, UNG will continue to go south to its historical low until the next support of $7.072. Formation of either a double bottom pattern or breakout from a falling wedge in a down trend will reverse a trend (i.e. the stock price will move up eventually). As I am planning to invest this ETF for long term, this analysis gives me some idea where I can accumulate more shares at a lower price.

SGX – Bearish Convergence!

SGX has started the correction. Standard Six Technical Indicators showed Bearish signal.

  • MACD showed Bearish Convergence.
  • RSI & Stochastic are heading south.
  • Parabolic SAR line on top of stock price.
  • Stock price is under 20D and 50D MA.
  • Stock price is at the lower Bollinger Band.
Immediate support at $7.65 and critical support at $7.028 (61.8% Fibonacci Retracement Level).

Goldman Sachs and Apple – Get Ready to Short!

I am preparing to short (buy PUT option) Goldman Sachs (GS) & Apple (AAPL) if the charts pattern are confirmed bearish.

Goldman Sachs (GS) appears to be forming a Head & Shoulders pattern. I am waiting for the right shoulder to be formed. The stock has been on the up trend since Mar 2009 and is due for a healthy correction. The 50D MA provides a very strong support line as the stock price bounced back twice in beginning of July and early Sept.

Things to watch out for GS:

  • Whether the right shoulder is formed?
  • Can the stock price breakdown the 50D MA support (probably concides with the neckline if H&S pattern is formed)?

Apple (AAPL) broke the 20D MA with a long bearish candle last Friday. The long term channel resistance which also coincides with its 50D MA trend line at about $185, is a critical support. Falling below this support could start the correction and see the price fall to $158.19 level (61.8% Fibonacci Retracement Level). Both MACD and RSI are bearish. MACD had confirmed its dead crossover and RSI broke its support trend line.

Things to watch out for AAPL:
  • Whether the stock price breakdown from the long term up trend channel resistance?
  • After the support is broken, whether AAPL can move back to the channel (i.e. the channel support become very strong resistance to prevent AAPL to move back to the channel)?