Member @woltertm requested an update on UGAZ (3x bullish natural gas ETN) in the trading room & as I still think that natural gas prices are at or near a bottom, I figured that I would post an update on the front page.
UGAZ was posted in the trading room as a trade idea with the first chart below on Dec 15th, listing a sole price target of 6.86. In the Gold, GDX, Platinum & Natural Gas video on Dec 18th, I added another price target at 6.29 where quick profits could be taken as UGAZ had already rallied 17% since the setup was posted 3 days earlier. UGAZ went on to hit that target/resistance level & immediately reversed, going on to backtest the bullish falling wedge pattern before reversing & rallying once again. Note: UGAZ did a 1/10 reverse split on Dec 20th which resulted in a 10 fold increase in the share price.
At this time, I’m watching the 2.78 level on /NG (nat gas futures). That is resistance that if /NG can take out, which I think it will soon, it will likely run up to the 2.845 level & quite possible beyond. That would be a 2.3%+ rally in /NG which should correlate into a 7%+ rally in UGAZ. I prefer to use the charts of /NG even if trading UGAZ due to the decay & tracking error of the latter. However, just looking at the chart of UGAZ, the first two targets overhead are 62.60 & 68.90ish.