Let's notice that natural gas futures are in the midst of a potent recovery rally from yesterday's low at 3.395 to this morning's high at 3.593 so far (+5.9%). Meanwhile, the U.S. Natural Gas Fund ETF (NYSE: UNG) has climbed from 5.56 to 5.68, or +2.7% in the "draft" behind natural gas.
At this juncture, both price structures are poised to move considerably higher, but natural gas futures, in particular, are approaching a confrontation with their 3-month resistance line, now at 3.6330. If hurdled and sustained this should trigger follow-through strength in the UNG as well as it confronts its nearest term down trendline, now at 5.800.
Of course, tomorrow morning at 10:30 am Eastern, natural gas inventories will be released, which likely will be impactful.
Sign up a FREE 15-Day Trial to Mike Paulenoff's ETF Trading Diary!
No comments:
Post a Comment