Are Oil ETFs Showing Us The Future Of Natural Gas ETFs?

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June 14, 2009 11:53am ETF BASIC NEWS NYSE:UNG

naturalgas1Keith Schaefer from the Resource Investor says “There are striking similarities between the stock charts of the US ETF for natural gas (UNG-NYSE) now and where the stock chart for the US ETF for oil (USO-NYSE) was in December-February.”


“The two charts tell us that despite all the bearish fundamentals for natural gas in North America (and there are lots!), the time to buy UNG is very near.  The chart for the Canadian natural gas ETFs (GAS-TSX, HNU-TSX) tells the same story,” Continues Kieth Schaefer.

“In February of this year, when everyone thought oil was going to stay at $40-$45 per barrel throughout 2009, the ETF for oil in the US, USO-NYSE, bottomed.  Its downward momentum was matched almost exactly with a rising crescendo of volume from investors.  The ultimate low was still a couple weeks away, but as soon as the volume started to subside, the ETF tracked higher,”  Kieth Schaefer Reports.

The full story has provided charts of the similarities.  Read Full Story:  HERE

 


 

We ran these ETF’s through the market club software and found the following results from their chart analysis program:

UNITED STATES OIL FUND LP (PACF:USO)
Smart Scan Chart Analysis confirms that a strong uptrend is in place and that the market remains positive longer term. Strong Uptrend with money management stops. A triangle indicates the presence of a very strong trend that is being driven by strong forces and insiders.

Based on a pre-defined weighted trend formula for chart analysis, USO scored +100 on a scale from -100 (strong downtrend) to +100 (strong uptrend):

     
+10 Last Hour Close Above 5 Hour Moving Average
+15 New 3 Day High on Thursday
+20 Last Price Above 20 Day Moving Average
+25 New 3 Week High, Week Ending June 13th
+30 New 3 Month High in June
+100 Total Score
 
 
US NATURAL GAS FUND ETF (PACF:UNG)
Smart Scan Chart Analysis is showing some near term rallying power. However, this market remains in the confines of a longer-term downtrend Downtrend with tight money management stops.Based on a pre-defined weighted trend formula for chart analysis, UNG scored -75 on a scale from -100 (strong downtrend) to +100 (strong uptrend):
     
+10 Last Hour Close Above 5 Hour Moving Average
+15 New 3 Day High on Thursday
-20 Last Price Below 20 Day Moving Average
-25 New 3 Week Low, Week Ending May 30th
-30 New 3 Month Low in April
-75 Total Score
 

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