As I mentioned in a previous post I don’t really like the natural gas equities but I am starting to like Natural Gas itself for a trade.  Things appear to be setting up technically and fundamentally.  According to this AP article the DOE has stated that natural gas reserves slid more then expected last week while crude and gasoline supplies jumped.  This is providing some support for natural gas and could lead to higher prices as winter sets in.  Take a look at this UNG chart on a weekly basis.  The downward momentum looks like it’s starting to wane and natural gas itself has held fairly steady over the past month down here in the $6 range.  It might be a bit early to get in but I’ve initiated a small position around 26.90.  I’ll be looking to add to it if the trade starts to work out.

UNG weekly

UNG weekly

BTW, take a look at the strength in nat gas today.  It’s the only thing that’s green.  Up 10 cents while crude and gasoline are both down.