The price of UNG has been in a steady decline since July 2008 when it was trading at more than $63. Today, it is about $16.
Virtually every market-traded asset has seen appreciation since the March low, including oil, which has rebounded from about $30 per barrel to the mid-$50s. Natural gas typically has a high positive correlation with oil.
In the past few days, a lot has changed for UNG. From a technical standpoint, it is beginning to break out from its ten-month decline on rising volume. We believe UNG has hit its lows and there is a high likelihood that the gas ETF will climb above $20.
By Nick Atkeson and Andrew Houghton, editors of Big Money Options
