Mon 4/30/12 4:50 PM – Natural Gas Prices May Have Hit Bottom

UNG, which is the ticker symbol for the US Natural Gas ETF is up 15% over the last 7 trading days from its record low. Natural gas prices hit $1.5 at that time. To buy natural gas directly you have to buy commodities, which I don’t do, so I use UNG as a substitute. It is far from a perfectly tracking substitute but will do well enough. It finished today at $16.42. I could picture it going to $18 – $20 before getting much selling. That’s a gain of 10% – 20% and might only take a few days to accomplish. The high $20s is a possiblity longer term.