Alert: natural gas technical pattern looks promising.

Let's add UNG to play for higher natural gas prices.

The International Energy Agency just reported global natural gas demand should increase by 17% over the next five years. Surely, that forecast is vulnerable to downward revisions if global growth takes a bigger hit than many expect/accept, but I think this demand news has some potential to carry for the natural gas bulls out there. 

Beyond that, the technical set-up looks like a buying opportunity. Specifically, I think the current bounce we've seen materialize since the end of April has one more wave higher that likely sees natural gas test the $3 mmbtu level.

Click here to view the chart set-up.

That said, today I recommend adding a long position in the United States Natural Gas Fund (UNG).

Trade Essentials.

Here is what I suggest you consider doing now:

UNG (Last price: $17.15)

Buy shares of United States Natural Gas Fund, symbol UNG, at the market. Then place an order to SELL ALL your shares of United States Natural Gas Fund, symbol UNG, at $15.95, STOP; this order is good till cancelled.