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Natural gas outperforms the commodity market (Part 2 of 2) (Continued from Part 1) Ascending triangle pattern
The NYMEX (New York Mercantile Exchange) April futures contract for natural gas prices signals a potential ascending triangle pattern. Prices retreated from the key support of $2.65 per MMBtu (British thermal units in millions) on March 10, 2015. The consensus of bullish inventory withdrawals supported the rise in natural gas prices. These factors could steer natural gas prices during this week of trading.
Pivots points for natural gas prices
Bearish traders should watch out because the support is at $2.65 per MMBtu for natural gas. The support is formed by prices hitting this mark on February 6, 7, and 9, 2015. Bullish traders could see resistance at $2.80 per MMBtu. Prices hit these levels on February 4 and 13, 2015.
Chart analysis
The potential ascending triangle pattern could drive natural gas prices higher. The breakout above $2.90 per MMBtu could push prices to the target of $3.25 per MMBtu. Bullish inventory withdrawals will support the rise in prices. However, oversupply and warm weather would always be the topic of discussion for bears. These factors would drive gas prices lower. Surveys suggest a bearish week for natural gas. According to Barclays estimates, the average price for natural gas is at $2.75 per MMBtu in 2015.
The RSI (relative strength index) is in overbought territory. Prices generally fall at this level of the RSI. Traders should be watchful considering the recent volatility in natural gas prices.
Natural gas volatility affects gas companies’ margins—like Chevron (CVX), Energy XXI (EXXI), and Ultra Petroleum Corp. (UPL). It also affects the margins of gas-based ETFs—like the VelocityShares 3X Long Natural Gas ETN (UGAZ) and the United States Natural Gas Fund LP (UNG).
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VanEck Vectors Global Alternative Energy ETF
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CODE : UPL |
ISIN : CA9039141093 |
CUSIP : 903914109 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Ultra Petroleum is a oil producing company based in United states of america. Ultra Petroleum is listed in Germany and in United States of America. Its market capitalisation is 6.4 millions as of today (€ 5.7 millions). Its stock quote reached its highest recent level on June 13, 2008 at 99.39, and its lowest recent point on August 07, 2019 at 0.11. Ultra Petroleum has 47 442 200 shares outstanding. |