UNG is poised for a rally. The three month chart suggests that the seasonal uptrend in natural gas is about to begin. UNG has broken out of its 50 day EMA and if this trend continues based on seasonal demand, storms damaging equipment and other factors, we’ll likely realize at least a 20-25% appreciation in value up from this $40 range that UNG is trading at. In addition, natural gas futures contracts are trading at a curve that suggests a generous appreciation in value. This suggests that investors believe natural gas will appreciate in value over what’s expected to be a bitter winter.

United States Nat Gas (UNG)

Posted by Alex, filed under Energy, Futures. Date: September 17, 2007, 1:00 pm |

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