Natural Gas Down Trend - Scalp with DGAZ
Updated
Natural gas is setting up a a short term trend down before draw down season begins. I am currently owning shares of DGAZ at the price point of $107 and I will be waiting for $120-$130 before Thursday to sell out of my position. Currently, Dgaz is sitting at ~$112. Natural gas is trending down until draw down season fully comes into effect. I expect the price of NG to increase during the overnight/ morning futures before this Thursday when the bullish report comes out. After the report, NG should go up 2-8%, then continue the downtrend shortly after depending on how bullish the report is given the recent cold weather. Natural gas is waiting for draw down season / a new cold front before it will decide to move up with another big move. Keep your eyes on UGAZ if natural gas gets down below the $2.50 per bpu range before large storage deficits start to take place.
Note
Sold my position in the 116-117 mark. Too much uncertainty to hold and took my profits. I would suggest the same for anyone else, DGAZ will most likely continue a run up to ~120 maybe higher, but it certainly makes sense to wait for a better opportunity. NG could get bullish fast given the current weather conditions as well as upcoming, most likely bullish, perhaps very bullish storage reports. Storage report coming out the the 21st will be extremely bullish and I predict it will market peak storage for this week, or the week before. This make certainly make UGAZ the better contender. Take your scalps and wait for better opportunities.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.