/NG (natural gas futures) is testing the 2.326ish resistance level now with a solid break above that level likely to be the catalyst for a move up to at least the 2.46 level/downtrend line. For ETN traders, the 10.75 level on UGAZ (3x bullish nat gas ETN) roughly aligns with my 2.46 (unadjusted) target for /NG. 60-minute charts of /NG & UGAZ below.
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- NG 60m Dec 20th
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- UGAZ 60m Dec 20th
Member @harvb in the trading room asked if nat gas was a buy & hold for the winter. Over the years I have shared the chart below, which highlights a clear pattern of natural gas rallying around year-end followed by equally sharp (or larger) corrections shortly before or after the new year. While it’s certainly a possibility that the New Year rally came early this year, I suspect that the real NY rally has yet to come & may be just around the corner. As such, one might opt to let a long position (taken over the last 2 days or today, if 2.326 gets taken out with conviction today) ride, periodically raising stops along the way.
$NATGAS seasonality Dec 20th