“Usually when a stock or ETF is ready to move higher from a base, the 20-day exponential moving average is above the 50-day moving average, with both averages pointing higher. In this case, the chart pattern has a bit more work to do because the 20-day EMA is currently trading below the 50-day MA,” said Wagner.
FCG, although it is rarely mentioned, meets the qualifications of a “smart beta” ETF because its 28 holdings are ranked based on price/earnings ratio, price/book ratio, return on equity and the correlation to natural gas futures prices.
Top-10 holdings include Penn Virginia (NYSE: PVA), Mangum Hunter Resources (NYSE: MHR), Bill Barrett (NYSE: BBG) and Cimarex Energy (NYSE: XEC).
First Trust ISE-Revere Natural Gas Index Fund
