Two ETFs Looking To Go Higher: United States Natural Gas Fund, LP, SPDR Gold Trust (ETF)

Rather than buying $GLD, we will look to enter the leveraged gold ETF $DGP.

Natural Gas ETF (NYSEARCA:UNG) continues to consolidate in bullish fashion with the lows of the current base holding above the prior swing high. The 10-month moving average has turned up and has been trending higher:

$UNG bullish base

On the weekly chart, $UNG has recently undercut the rising 10-week MA, but is attempting to reclaim the average this week. The volume has tapered off during the base (bullish), and the price action has tightened up in the base after several weeks of volatility in late January and February:

$UNG bullish base

$UNG is acting like it wants to go higher. Whether that move is right away (scenario A on the chart above), or there is one more undercut of the 10-week MA and then a move up (scenario B) we do not know. We are already long $UNG in our ETF portfolio.

This article is brought to you courtesy of Morpheus Trading, LLC.

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