Natural Gas Bears in Full Retreat (UNG)
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United States Natural Gas ETF (NYSE: UNG) popped on Thursday following the release of weekly EIA data on natural gas inventories. The report showed another larger than expected drop in stockpiles (-148 bcf vs -139 bcf expected) and this had traders bidding natural gas futures prices higher to $3.50 per million btu, near 2012 highs.
Natural gas traders are also keeping a close eye on weather forecasts, which for now continue to predict cold weather in the U.S. Additionally, nuclear outages are above average and this is seen boosting demand.
Since January 1st, United States Natural Gas ETF (NYSE: UNG) has tacked on 6 percent and bears are in full retreat. Eventually futures traders are going to want to take a shot at $4, but that may prove easier said than done as $3.50 has proven to be a solid area of resistance in the past.
UNG is higher by 1.6 percent intra-day on Thursday.
Natural gas traders are also keeping a close eye on weather forecasts, which for now continue to predict cold weather in the U.S. Additionally, nuclear outages are above average and this is seen boosting demand.
Since January 1st, United States Natural Gas ETF (NYSE: UNG) has tacked on 6 percent and bears are in full retreat. Eventually futures traders are going to want to take a shot at $4, but that may prove easier said than done as $3.50 has proven to be a solid area of resistance in the past.
UNG is higher by 1.6 percent intra-day on Thursday.
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