An exchange traded fund that invests in natural gas futures rallied to break through its 50-day simple moving average on Tuesday for the first time in nearly a year.
The last time U.S. Natural Gas Fund (NYSEArca: UNG) traded above this technical indicator was in July 2011.
Still, the $849 million ETF remains in negative territory for 2012 with a loss of 35.3% as of May 7, according to Morningstar. The fund has been hit by warm temperatures this winter and an oversupply of natural gas, as well as contango in futures contracts.
The commodity ETF gained 4.3% in afternoon trading Tuesday. [Natural Gas Rallies but ETN Sees Weekly Loss]
Natural gas futures were up sharply late Tuesday after trading in the red earlier in the session. The commodity was lifted by signs of rising demand from power utilities and recent output cuts, according to Dow Jones Newswires.