Commodities in general, but the oil and gas complex in particular, are very strong in the early going this morning. Let's have a look at the pattern that is emerging in the U.S. Nat Gas Fund ETF (UNG). Purely from a technical perspective this morning’s thrust above near-term resistance at 13.15/20 has triggered the ignition of a new upleg that should hurdle and sustain above 14.00 on the way to 14.30, then 15.00/30 thereafter. Only a failure to sustain today’s gains followed by a reversal that closes beneath 12.90 will compromise my current constructive outlook.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.