Price Targets for /NG & UGAZ

Since /NG (natural gas futures) was testing the 2.30ish resistance when posted in the Charts I’m Watching update earlier today, nat gas pulled back from that resistance level to make a successful backtest of the secondary (minor) downtrend line running parallel & just below the larger downtrend line off the mid-Sept highs.  If /NG can take out the 2.30ish area with conviction, my first target would be 2.34ish followed by 2.390ish. From the look of both this 60-minute as well as the daily chart, the potential for a much larger uptrend that goes well beyond the mid-Sept high exists although there is still some work to be done to firm up that scenario. Previous & updated 60-minute charts below (click on first chart to expand, then click on right of chart to advance).

Zooming out to the bigger picture via the daily charts, the recent correction following the recent divergent low & subsequent 34% rally appears to be the first corrective wave in what may likely prove to be a new uptrend with a lot more upside yet to come in natural gas. The previous (July & Sept) and updated daily charts highlighting that divergent low & likely ‘initial leg up’ rally below.

I’ve also included some potential targets (any or all marked levels) on this 60-minute chart of UGAZ (3x long/bullish natural gas ETN) but keep in mind that as these are unofficial trades for now, the price targets shown are the actual resistance level in which a reaction is likely, i.e.- ‘unadjusted’ price targets. As such, best to set any sell limit order(s) slightly below the actual resistance level(s) you are targeting, if currently long or considering a long on /NG, /QG*, UGAZ or any of the other natural gas ETNs such as UNG.

*/NG is the Henry Hub natural gas futures contract with /QG being the NYMEX Natural Gas Index futures contract which has a multiplier of 2,500 (vs. the 10,000 multiplier of /NG), allowing one to trade futures with 1/4th the leverage of the standard /NG contract.