Natural Gas Sets Up for Breakout but Bears Look to Step in Front of the Trade (UNG)
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United States Natural Gas Fund (NYSE: UNG) experienced a late day rally on Tuesday, and was up 2.6 percent. The bump higher extended a move that began Monday on news of output disruptions caused by a tropical storm in the Gulf of Mexico. The storm has passed, but traders pushed natural gas higher into the 2.74 area.
A shortage of sellers has given bulls the confidence to attack resistance in this area, as UNG and natural gas looks set to breakout later this week. However, based on past price action near these levels, moves higher in natural gas are going to result in an all out slug-fest, as bulls and bears each try to take the upper hand.
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A shortage of sellers has given bulls the confidence to attack resistance in this area, as UNG and natural gas looks set to breakout later this week. However, based on past price action near these levels, moves higher in natural gas are going to result in an all out slug-fest, as bulls and bears each try to take the upper hand.
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