Natural Gas Taken Out after Hit with Wave of Profit Taking (UNG)

October 22, 2012 3:19 PM EDT
United States Natural Gas ETF (NYSE: UNG) declined 4 percent as natural gas futures broke below $3.50 per million BTU. Traders say the decline is related to short term profit taking following the latest run up in prices.

Last Friday's slight build up in rig count along with ongoing steady supply and high inventory levels provided convenient reasons to sell, despite forecasts that call for below normal temperatures in the eastern half of the U.S. Natural gas prices hit yearly highs near $3.65 last week.

United States Natural Gas ETF (NYSE: UNG) is higher by 12 percent in the past 30-days, but is lower by 14 percent year-to-date.

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