In trading on Thursday, shares of the United States Natural Gas Fund LP ETF (Symbol: UNG) entered into oversold territory, changing hands as low as $9.545 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In the case of United States Natural Gas Fund LP, the RSI reading has hit 29.1 — by comparison, the RSI reading for the S&P 500 is currently 64.2.
A bullish investor could look at UNG’s 29.1 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
Looking at a chart of one year performance (below), UNG’s low point in its 52 week range is $9.545 per share, with $17.025 as the 52 week high point — that compares with a last trade of $9.63. United States Natural Gas Fund LP shares are currently trading off about 1.3% on the day.
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Further UNG Research:
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