Is Natural Gas The Next Commodity To Run? US Nat Gas Fund (UNG)
Posted by admin | # |
02:50:52 pm on May 15, 2009

Over the last few months all commodities have had a big run, but natural gas has been the red headed step child, lagging its commodity brothers.  That appears to be changing.  Since the beginning of May big money has been flowing into the US Natural Gas ETF (UNG) ETF which sent it soaring from 13 to nearly 18 in about two weeks.

The Street.com is reporting heavy call volume, betting that UNG will rise another 20% within the next 5 months.  So is now a good time to buy?  That certainly depends on your time horizon, but given the fact it has come so far so fast, I’m looking for more of a pull back, possibly to the 50 day moving average just above 15.  That may be a good opportunity to add shares.

Tags: commodities, etf, ung, us natural gas

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