United States Natural Gas Fund (UNG) — This trust invests directly in futures contracts on natural gas and is traded on the NYMEX. It’s clearly one of the most intriguing Exchange-Traded Funds (ETF).

After plunging from more than$60 last July to below $13 this month, the ETF has turned on exceptionally high volume and driven through both its 20- and 50-day moving averages in less than one week. It also penetrated its major bearish resistance line and triggered a buy signal from the Moving Average Convergence/Divergence (MACD).

Even though it seems somewhat overpriced now, a partial position could be taken and added to on a pullback. The upside potential of this investment could be extraordinary.

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Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.