Monday, March 15, 2010

United States Natural Gas Fund (NYSEArca:UNG) and Inventory

United States Natural Gas Fund

Over the last year the United States Natural Gas Fund (NYSEArca:UNG) has continued on its downward spiral, with the chart line continually dropping from left to right.

A year ago the stock was almost at double what it is today, and there's no end in sight as far as where it will bottom out, as inventory continues to hold strong with no surprises in the mix. Two years ago the stock was over five times the value as it is today, revealing once it bottoms out there could be a nice rebound, although many of those long in the stock are hoping that happens sometime soon.

Until demand for natural gas picks up though, the company will continue to struggle, and we could see it plunge even further before we see signs of sustainable recovery.

This confirms consumers and businesses aren't convinced the recession is over, and until they start spending again, including on natural gas, we'll see supplies continue to grow or stay the same, giving the stock nowhere to go but down or stay level.

Even so, I like this stock once it does reach its bottom, as it should give a nice upward push at that time.

United States Natural Gas Fund

10 comments:

Anonymous said...

Please be clear if UNG is a buy, sell, hold. everything else are just shallow words for me.

Anonymous said...

What "company" are you referring to? What Stock? This is an ETF (or ETN)

Anonymous said...

UNG trades Nat Gas Futures....so if the price of nat gas increases then so does UNG....but slowly....there are several other factors that take hold on value as well...in the long run UNG will be a big winner from here on out....if Nat Gas gets any cheaper then it will cost more to produce...and if you dont know what that means then you souldnt be trading stocks!

Marubozu said...

I think UNG is almost hitting the bottom base no the chart pattern.

http://mystocksinvesting.com/us-stocks/us-natural-gas-etf-ung/ung-in-free-fall-good-news/

Unknown said...
This comment has been removed by the author.
Anonymous said...

the options are cheap.......straddle/strangle this stock is your best bet

Anonymous said...

UNG is in a big mess because of its management, the whole freakin top management should be fired.

Anonymous said...

"I like this stock once it does reach its bottom" Ha! Don't we all.

Anonymous said...

CUANDO LA RECUPERACION DE LA ECONOMIA SEA MAYOR, Y PAREN LOS RECLAMOS DE TRABAJO, UNG VA A SUBIR HASTA LOS $17

Anonymous said...

To the author and everyone reading the comments: UNG is NOT a stock, it's an ETF!!! Author, we would all appreciate it if you were more clear and concise with your article. Additionally, please provide disclosure, whether you have a long or short position in UNG, or if you are trading the futures directly.
Thanks.