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Nat Gas Beginning New Upside Trend?

Don’t get so distracted by Greece, that you miss what’s happening in nat gas.

Mike Harris of Campbell & Co says that coming off Thursday's dramatic move higher, Friday’s close could be critical for the whole nat gas trade.

"$2.55 is now a crucial level," he says. We’ve flirted with that level a few times but nat gas has never gotten above it.

“If nat gas can settle north of $2.55, shorts may start covering and it could be the beginning of a new trend. Nat gas has been in a downtrend but above $2.55 it could begin an uptrend,” he says.

And Harris sees a fundamental catalyst that could support the technical analysis.

“A smaller than expected build in supplies recently annouced by the EIA suggestsutility demand is rising,” he explains. “The switch from coal to gas may be more pronounced than people expected.”

Fast Money Trader Peter Najarian, co-founder of OptionMonster adds that options investors are making similar bets.

“They’re attacking to the upside. Whether it’s Cheniere , Noble , Ensco or other nat gas producers, institutional money is buying calls. It's been the hottest sector all week."

Posted by CNBC's Lee Brodie

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Trader disclosure: On June 15, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian is long AAPL; Pete Najarian is long BP; Pete Najarian is long C; Pete Najarian is long NOK; Pete Najarian is long MSFT; Pete Najarian is long HPQ; Pete Najarian is long PEP; Pete Najarian is long SBUX; Pete Najarian is long INTC; Pete Najarian is long WLT; Pete Najarian is long SCCO; Pete Najarian is long CE; Pete Najarian is long PFE; Pete Najarian is long MRK; Pete Najarian is long BP CALLS; Pete Najarian is long AAPL CALLS; Pete Najarian is long CIEN CALLS; Pete Najarian is long CS CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long KEY CALLS; Pete Najarian is long XCO CALLS; Pete Najarian is long THC CALLS; Pete Najarian is long OIH CALLS; Pete Najarian is long SPY CALLS; Pete Najarian is long DLTR CALLS; Brian Kelly is long QQQ Calls; Brian Kelly is long QQQ Puts

For Mike Harris|
Campbell is short the NYMEX
Campbell is short WTI Crude Oil

For Paul Forward
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Stifel, Nicolaus & Company, Inc. makes a market in the securities of BTU
Stifel, Nicolaus & Company, Inc. makes a market in the securities of PCX

For David Palmer
The U.S. equity strategist, a member of his team, or one of their household members has a long common stock position in SBUX
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