Energy ETFs Update: 50-Daily Moving Averages Important

While nuclear, coal, solar, and hydrogen power stocks and ETFs have done well,

Oil and gas, our more traditional and somewhat abundant resources traded through various stocks and ETFs, have not done that well.

Could that change?

I am now quoted for “All energy hands on deck,” so it behooves me how cheap both oil and gas are on the futures exchanges.

How will we know when that changes?

The first chart is of the US Oil ETF (NYSEARCA: USO). 

What is so important is that the price of the US Oil ETF (USO), since the end of August, has not had 2 consecutive closes over the 50-DMA (blue line).

We like to use this confirmation, and this is a fine example of why. 

2-day closes above helps avoid whipsaws. A single-day close above the 50-DMA could just be noise, a short squeeze, or end-of-day buying.

Two closes above shows buyers are committed, not just testing resistance.

This increases the probability that the trend shift is sustainable.

Psychologically, it also keeps traders disciplined—waiting for proof instead of reacting emotionally to one big day.

Click here to read more about oil and gas, plus get actionable information on key indices and sector ETFs

Today, USO closed back over the 50-day moving average.

That means the closing price on the 24^th is huge.

Confirmation would mean that the trend shift this time could be sustainable. 

The US Natural Gas ETF (NYSEARCA: UNG) has a different use of the 50-day moving average.

It has almost acted like a trendline of resistance.

Since June 2025, the US Natural Gas ETF (UNG) has not closed above the 50-day moving average.

At the last rally on September 17^th, the price of UNG ran right up to the 50-day moving average.

But did not clear it.

That makes it simple really.

Want to know if oil has shifted bullish?

Wait for 2 consecutive closes over the 50-day moving average.

Want to know if natural gas has bottomed out?

Wait for 2 consecutive closes over the 50-day moving average.

Twitter: @marketminute

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.