United States Natural Gas Fund (UNG) Hits a New 52-Week High
The United States Natural Gas Fund LP (UNG) hits a new 52-week high. Are more gains in store?
For investors looking for momentum, United States Natural Gas Fund LP UNG is probably a suitable pick. The fund just hit a 52-week high and is up 112.7% from its 52-week low price of $8.22/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
UNG in Focus
The fund is an exchange-traded security that is designed to track in percentage terms the movements of natural gas prices. UNG issues shares that may be purchased and sold on the NYSE Arca. It has AUM of $274.4 million and charges 1.35% basis points in annual fees.
Why the Move?
The cold wave from Arctic region accelerates electricity demand across the United States, putting focus on natural gas. Considering the scenario, forecasts of colder-than-expected temperatures in the United States are expected to drive natural gas prices. U.S. natural gas futures have now risen to a seven-year high due to supply crunch heading into the winter-heating season. These factors are making funds like UNG more attractive.
More Gains Ahead?
It seems like the fund will remain strong, with a positive weighted alpha of 71.05, which gives cues of further rally.
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United States Natural Gas ETF (UNG): ETF Research Reports
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