UNG Breaking Higher?

Published on Monday, 14 June 2010 11:45 Written by Christopher Lynn

New York, Jun 14^th (TradersHuddle.com) – The United States Natural Gas Fund (NYSE:UNG) is probing the $8.50 area, which was the high volume breakout highs earlier this month.

The UNG was able to hold above the $8 area last week, setting what traders consider to be a higher low, which is now being used as a pivot point for the push to re-test resistance.

The United States Natural Gas Fund (NYSE: UNG) has been the favorite short for multiple traders during the last year, where every single rally was shorted, as the UNG continuously made lower lows stuck in contango with the ETF selling the front month at a loss as it rolled over to buy contracts on the next month.

For the past couple of months the dynamic started changing as the UNG actually started to sideways trade for some time setting up a base range from $6.50 area to $7.50 on the high side.

Traders are hoping to see a higher range develop.