Natural gas futures are up about 3.5% this morning, strength that is in sympathy with the rest of the commodity complex, such as gold, oil and the euro, which is attracting money flow on this first trading day of 2008. Purely from a technical perspective, let's notice that the U.S. Natural Gas Fund (UNG) has started the session (and the year) with a powerful up-gap open, and has continued still higher, towards a confrontation with the declining 50-day moving average, now at 37.98. At this juncture, my work points higher, to a next target zone of 38.00/40.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.