Nat-Gas Bulls Get Jittery as Prices Continue Higher
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United States Natural Gas ETF (NYSE: UNG) is moving higher in early trading, recovering yesterday's loss. The pull back on Tuesday was caused by profit taking after a three day rally in the price of natural gas futures. The rally was fueled by speculation of warmer weather and inventory levels that showed slower year-over-year inventory builds.
This morning, UNG is back on the move and is pressing higher as the futures prices looks to take out resistance levels at 2.80. As the price trends higher, traders will be eying weather forecasts, sentiment shifts, and the potential impact higher prices will have on utility and power plant demand usage relative to coal.
Look for tropical weather in the gulf as a catalyst that could cause a breakout in UNG and natural gas futures. Until then, don’t be surprised if we get a stall at current levels in the short term.
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This morning, UNG is back on the move and is pressing higher as the futures prices looks to take out resistance levels at 2.80. As the price trends higher, traders will be eying weather forecasts, sentiment shifts, and the potential impact higher prices will have on utility and power plant demand usage relative to coal.
Look for tropical weather in the gulf as a catalyst that could cause a breakout in UNG and natural gas futures. Until then, don’t be surprised if we get a stall at current levels in the short term.
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