For reference only, UGAZ is not even tracking the front month right now. This was the best way I could find to show the point I am trying to make. UGAZ should NEVER be held long term.
NG: Natural Gas June futures rallied on Thursday into EIA report, which showed in-line storage build of $103 bcf. Natural gas stocks were 799 bcf higher than this time last year. The fundamentals remain on the bearish side with low consumption and warming weather. However, the economy is reopening, which is a bullish factor. NG chart dipped after reaching nearest...
Natural gas futures contracts NG has drifted lower on Wednesday reaching $1.6 with corresponding UGAZ price at $15.27. The NG chart moved a little higher from there trying to establish a bottom. Should we not hold $1.6 level, the next possible level of support is $1.5. In that case, UGAZ may go lower toward $13 handle. Near-term resistance is seen at $1.8 and...
Natural gas futures contracts moved lower this week on low demand due to ongoing COVID lockdowns and warming weather. Support seen earlier at $1.72, has been broken. Next possible levels of support are $1.6 and $1.5. Another triple digit injection of around 104 bcf is expected on Thursday (EIA report). Supply-Demand deficit is expected to narrow: April -6.64...
There is a possibility of Ugaz pushing up to the $35-37 range before coming back down...
I use Stupid Willy to find approximate bottoms for ugaz and it looks like we could have a good run here today!!!
$ung $ugaz $dgaz $boil $kold $unl $gaz I'm gearing up for the next cycle.I wouldn't be surprised to see a deeper flush. Be careful with leveraged ETF's even though they appear cheap. We don't know how low this can go..take a look at what happened to oil etf's as oil went to zero and below. what strange times we live in.
Comparison to show the importance of not holding UGAZ long term.
A serious look at what to expect from UGAZ if natural gas changes it's trend and starts a bull rally. Many are stuck in UGAZ since 2019, natural gas is down 47% and UGAZ 89% from the November high. UGAZ is not down 3 times natural gas due to the rebalancing that occurs, unless there is a decline of more then 33% in one day it is not possible for UGAZ to go to...
This is a continuation of my 2020 bull rally theory, finding the best way of capitalizing on the potential opportunity in front of us is the next step. UGAZ did not perform well long term during the bull rallies of 2012 and 2016, substantial gains were seen initially but the decay and volatility prevent this product from having long term gains. After the initial...
By no means a pro, just an observation I found. Will NG repeat this pattern? If so, suggest bottom will be $1.30-1.50
May pullback in the near-term, but with record short interest as long as above 1.87 looks good for a squeeze in coming month or two
1.753 set on Feb. 11 is probably a major long-term bottom. Historically, #natgas has tended to bottom out in the week ending Feb. 21 bluegoldresearch.com
Natural gas is setting up as a long, with positive divergence on weekly chart. Will look for higher prices.