This morning’s better-than-expected natural gas inventory data spiked the U.S. Natural Gas Fund ETF (NYSE: UNG) from around 12.25 to 12.64 before the buyers ran out of energy. The spike to 12.64 reaffirms the key resistance plateau between 12.65 and 12.80, which continues to put a lid on the market – and leaves open a scenario that calls for yet another downleg into new low territory projected between 11.80 and 11.20. I am still looking to start a new long position either at new lows (11.88) or on a breakout above the market at 12.80.

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