Heating Up in a Flash

Natural gas has been rather quiet since July 4th, sliding under the radar as crude's weakness took on a more prominent role. 

But this morning headed into inventory we noted for Members that natty rallying in front of the report, and is now surging even more afterwards.

For context, the UNG daily chart, below, ETF for natty, shows the $8.25 level being decisively breached to the upside at the moment. The consolidation throughout July appears to be constructive, with the 200-day moving average acting as reasonable support. 

To be sure, a strong close today is critical to the bull case for a new leg higher.  

However, for those who have been patiently waiting for a new trade in UNG, the price action this morning is certainly worthy of close attention going forward.