This morning’s slightly better than expected inventory data coupled with continued strength in the oil market has helped to propel the U.S. Natural Gas Fund ETF (UNG) from 14.00 to 15.33, which has pierced the May-June resistance line at 15.20. At this juncture, the ability of the UNG to hold its gains above 15.00 will be considered very constructive action. If such proves to be the case, then I will be expecting the UNG to race towards a test of the June 2 high at 16.10 quickly, to complete an impressive near-term (double) bottom.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.