United States Commodity ETF (USCI Quick QuoteUSCI - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 50.08% from its 52-week low price of $64.26 per share.

Are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.

USCI in Focus

The underlying SummerHaven Dynamic Commodity Index Total Return seeks to reflect the performance of a portfolio of 14 commodity futures. The product charges 116 bps in annual fees (See: All Broad Commodity ETFs).

Why the Move?

The commodity sector has been an area to watch lately, as supply disruptions through the Strait of Hormuz have driven prices higher. Damage to critical energy infrastructure in the region, which is restricting near-term production capacity, along with the closure of the Strait of Hormuz, causing supply disruptions, is likely to keep oil prices higher for longer than expected.

Prolonged tensions in the Middle East could keep oil markets structurally tight, with long-term oil prices remaining elevated well beyond the resolution of the conflict.

More Gains Ahead?

USCI might continue its strong performance in the near term, with a positive weighted alpha of 45.18 (per Barchart.com), which gives cues of another rally.