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UNG - Analysts in fear... and gas turn bullish!

|Includes: The United States Natural Gas ETF, LP (UNG), USO

By Danny Devito @

In the past post I mentioned that was positive that UNG tried at list to cross the 1 month average of its spread with USO, the stocastic was in BUY mode and analysts increased significantly the negative outlook on gas.

Today we see the results of this 3 bullish factors.

UNG  rebound even above the resistances of 12.69 and in the target area of 13.20 that is however a big obstacle. Above 13.29 and 13.40 UNG can fly of a 22/38% since 11.91 USD low.

However, on this hard commodities ETFs I prefer to sell put options because is the unique way to fight with contango and rollover losses.

Chart of UNG


And now the more interesting strategy I mentioned in the past week:

the spread UNG/USO

With stronger power we are again above the 1 month average and the possibility so to invert the bearish trend in favour of GAS. The time will say, for now prices below the 1 month average seem to be a good buy opportunity.

Dear friends, I will update you tomorrow.