Don't Ignore This Chart!

Natural Gas ETF surges above April high

The US Natural Gas Fund (UNG) is perking up with a little break above the April-May highs today. However, like the commodity itself, UNG remains in a long-term downtrend. After consolidating the last two months, the breakout argues for an oversold bounce that could retrace 50% of the prior decline. The indicator window shows the Amex Natural Gas Index ($XNG) along with the US Natural Gas Fund (black).

100603ung click this chart for details
Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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