Natural Gas (UNG) Rocketing Higher
January 10, 2024
We have been patiently waiting for natural gas to come back to life after a near 80% decline from its highs the last year or two. Yesterday the UNG etf traded 4x its usual daily volume, only stopping when running into serious resistance near the 50 and 200 day MA’s. We will be keeping an eye on natgas, as the long, drawn out sideways action after a huge decline might be coming to an end. Let’s see how it holds up, but if it can get above those critical MA’s and then use them as support over the next weeks and months, we will certainly get long. To be determined is which vehicle to use, the futures, the UNG etf, or possibly and natural gas stock etf like FCG, though the latter didn’t react to the big up day in gas, so maybe that is a tell that we will have plenty of time to do our buying. For now, keep your eyes on this chart.
