We have a potential bear flag forming on the /NG (natural gas futures) 60-minute chart although the measured target of that flag is beyond my 6.53 swing target, which remains the final target for now.
NG 60m June 14th
Zooming out to the daily chart, even with today’s drop of ~16%, natural gas still has about another 8% downside to my 6.53ish swing short target. UNG (+1x ETN) and KOLD (-2x) as well as /QG (MINY futures contract) are the alternative trading vehicles for this trade. With the bearish case for both nat gas & crude oil continuing to firm up, the related short trade ideas on XLE/ERY/DUG, XOP/DRIP, & XES as well as the previously highlighted coal stocks also continue to stand out as some of the most attractive shorting opps at this time.
NG daily June 14th