Best trade advice for this week – July 2nd

Trading symbol UNG which closely follows price movement of natural gas prices in the forward month of natural gas prices moved up 60 cents or 7.83 percent for the week ending July 30th. I wrote some $6 put contacts for Oct. and January 2011 given the support level of $6.72 on UNG or $3.82 in near month futures contracts. Seasonally, July is a good month to get long natural gas ahead of its best five months, August through December. I would be a buyer of UNG at $7.82 and if it breaks this level another position at $7.55 with a stop loss order $7.50. Presently it’s trading above shorter term moving averages and there is a technical gap at $7.82 that needs to be closed. There is a technical intraday gap at 8.75 that needs to be closed. I have also been seeing weakness in weekly natural gas storage report that is released every Thursday morning, especially within the annual data comparison to current storage levels. We have few storms projected through the gulf and NE has been experiencing very hot temperatures these past few weeks. My projected gain on this trade is $9.93 cents within the next 45 days of trading. Please remember that you should consider adjusting your buy and sell levels by a few pennies on both sides of the trade. Also remember that bulls and bears make money while pigs get slaughtered.