Is It Time For Natural Gas ETF To Head Much Higher?
Chris Kimble | Sep 03, 2021 02:19PM ET
The past 15 years or so have seen natural gas mired in a down-trend. But natural gas prices are perking up. This has given life to the United States Natural Gas Fund (NYSE:UNG).
Today’s chart looks at a weekly UNG chart, from over the past five years.
Zooming in, we can see that UNG has been caught up in another trading downtrend over the past 22 months marked by each (1). During this time, the price of UNG has fallen nearly 65%.
But prices have been rallying over the past several weeks, and have UNG testing the top of this falling price channel at (3). This breakout test also comes at a time when natural gas tends to perform well.
Seasonality says the next 30 days yield an average gain of 16% at (2).
So if natural gas breaks out at (3), it should result in much higher prices. Stay tuned.
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