UNG ETF: Natural Gas Sector Bounces

UNG, the Natural Gas ETF is starting to bounce on high volume. This week over 80 million shares have been trading and the stock is trading $16.22 as of close Thursday. Does it continue?

The most recent low on UNG is $12.69 and it has had a terrific run, up 27%. UNG is traded on the NYSE Arca exchange and has 98,000,000 shares outstanding. It attempts to track the price of natural gas delivered to Henry Hub, Lousiana.

UNG's portfolio contains forward and swap contracts along with natural gas future contracts. There is a 0.60% management fee and the issue does not use any leverage.

UNG Monthly Chart

Buy the red days and don't chase. UNG is likely heading to $24's if volume continues to push it up. As you can see, it has already reached 50% of its volume peaks and we are only 5 days into May. This suggests further upside movement in the weeks ahead. And don't forget to set your stops!

I like my utility bill low so I'm not liking this to go too high or I will be forced to eat out more for dinner! $32 is likely the tops 12-18 months out.

NG Futures Contract Hourly Chart