DGAZ (3x short natural gas ETN) offers an objective long entry on this backtest of the falling wedge pattern & will be added as an official trade here. The sole price target for this trade is 148.62 (subject to revision, depending on where the futures are trading if/when DGAZ starts to approach that level) with a suggested stop on any move below 121.50. Due to the inherently volatile nature of natural gas coupled with the 300% leverage, the beta-adjusted position size for this trade is 0.30.
DGAZ 60-min July 12th
I remain intermediate-term bullish on natural gas but as highlighted yesterday, the odds for a near-term correction in nat gas are decent. After hitting the first price target for a quick 2 1/2% gain following the wedge breakdown yesterday, /NG (nat gas futures) bounced off the 2.39 target/support & once again offers an objective short entry here on the backtest of bearish rising wedge pattern up to the 2.51 resistance level but not above, targeting the uptrend line and/or 2.30 support level.
NG 60-min July 12th