Additionally, natural gas may be gaining traction from technical traders after prices inched above their 200-day moving average Tuesday for the first time since November 2014, which triggered buy orders. The long-term trend line is a widely observed indicator for technical traders to close out bearish positions or add on bullish allocations.
“If it stays above there it’s significant. Then you can make a case the market is bullish,” Scott Gettleman, an independent trader, told the WSJ.
Related: Natural Gas ETFs Ready for Summer Demand
UNG and GAZ are still trading below their 200-day simple moving averages. UNG, though, popped above its short-term, 50-day simple moving average.Natural Gas ETFs Heat Up on Warmer Weather
Nevertheless, natural gas stockpiles are still hovering near record-high levels, with U.S. natural gas storage at around 2.8 trillion cubic feet as of last week, or 37% higher than levels at this time year-over-year and above the five-year average for this time of the year, Investing reports.
For more information on the natgas market, visit our natural gas category.
United States Natural Gas Fund