United States Natural Gas Fund (NYSE:UNG) — This commodity ETF is one of thirectly in the near-month futures contract traded on the NYMEX. After years in decline, natural gas has been under accumulation.
UNG bottomed in April, and since then, has formed a solid bull channel with a bottom at $18 and top at around $22. Volume has picked up nicely, and although the MACD appears overbought, it could remain that way for an extended period.
Due to the increasing use of this alternative fuel for trucks, cars, etc., and the fact that it burns with a very low contamination, the price is expected to continue to rise almost indefinitely.
For those investors looking for more daily action, ProShares issued an ultra fund that seeks to replicate twice the performance of the DJ-UBS Natural Gas Sub-Index. But be careful, ProShares Ultra DJ UBS Natural Gas (NYSE: BOIL) has wide daily swings and is best suited for speculators and d