UNG currently labors 33.4% below its 52-week high and almost 14% below its 200-day moving average. The fund has not closed above its 200-day line since February.
Related: Hotter Temps Don’t Always Heat Up Nat Gas ETFs
Aggressive, risk-tolerant traders can exploit plummeting natural gas prices with leveraged exchange traded products such as the VelocityShares Daily 3x Inverse Natural Gas ETN (NYSEArca: DGAZ), which seeks to provide the daily inverse 3x or -300% performance of NYMEX natural gas futures. The ProShares UltraShort Bloomberg Natural Gas (NYSEArca: KOLD) provides the daily inverse 2x or -200% performance.
“We think there’s reasonable risk down to the $2.20 to $2.30 range,” noted Raymond, who added there’s additional risk for nat gas falling to $1.75 before the end of the year,” reports CNBC. “From current levels, a drop to $1.75 in the next three to six months would represent more than a 30 percent decline in price.”
UNG has added $96.5 million in new assets this year, including $42.1 million in the third quarter.
For more information on the natgas market, visit our natural gas category.