Will Natural Gas Bounce?
Andrew Thrasher | Dec 18, 2012 07:13AM ET
Natural gas is the lone wolf of the commodity world, setting out on its own course while for the most part ignoring what the rest of the capital markets are doing. Short-term traders are often drawn to the high volatility of the nat gas market, rising and falling by greater degrees than just about any other commodity.
From the low in April, natural gas has risen nearly 70%, even taking into account the recent bout of weakness that’s forced the commodity to fall nearly 15% since mid-November. But recently we’ve seen the United State Natural Gas Fund ETF (UNG) fall to a support line that’s been created off the April and June lows. Ideally we’d like to see a trend line tested at least three times in order to gain greater confidence in its ability to hold, but so far we’ve seen a slight bullish bounce in UNG off the trend line that sits near $18.50.
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