Natural Gas Futures Reverse after Hitting a Wall of Resistance (UNG)
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It has been a volatile few days for natural gas and investors owning United States Natural Gas ETF (UNG).
Natural gas prices were initially buoyed by a positive inventory report from the EIA. However, natural gas futures hit major fundamental and technical resistance at $3.20 and subsequently declined, closing below $3 on Thursday and accelerating lower intraday on Friday.
Traders say, besides the previously mentioned resistance faced at $3.20, moderating weather forecasts are adding to the downside pressure since, in theory, it could reverse the downward trend in inventory if demand tappers off.
United States Natural Gas ETF (NYSE: UNG) is lower by 4 percent intraday on Friday.
Natural gas prices were initially buoyed by a positive inventory report from the EIA. However, natural gas futures hit major fundamental and technical resistance at $3.20 and subsequently declined, closing below $3 on Thursday and accelerating lower intraday on Friday.
Traders say, besides the previously mentioned resistance faced at $3.20, moderating weather forecasts are adding to the downside pressure since, in theory, it could reverse the downward trend in inventory if demand tappers off.
United States Natural Gas ETF (NYSE: UNG) is lower by 4 percent intraday on Friday.
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