The price of natural gas has been moving higher. And if it continues to do so, shares of the United States Natural Gas Fund, LP UNG should breakout and follow along.
A resistance level is a large group of investors who are all trying to sell at the same price. UNG has a resistance level at $19.00.
If a market trades above resistance and holds its gains, it's called a "breakout." This is a bullish dynamic and shows that the sellers who created the resistance have left the market.
With these sellers out of the way, the stage is set for the buyers to push UNG higher.
To learn more about trading and ETFs, check out the new Benzinga Trading School.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
