UGAZ Natural Gas Swing Trade Update

Member @ben711 inquired in the trading room if the UGAZ was still an active trade. My reply:

Yes, I considered closing the nat gas short around the open today, both personally & officially by revising the target slightly higher but decided to stick with the final target of T2 at 31.44 on UGAZ. If you pull the last 60-minute charts of UGAZ & $NG (futures) that I posted, you’ll see that both hit the support/targets that were just above the 31.44 level on UGAZ. Certainly a very objective level for you to have booked profits on UNG but I had revisited the charts this morning & still lean towards at least one more thrust down in nat gas.

Here are those previous charts with the support/potential target levels that I posted on $NG & UGAZ yesterday. I had inadvertently typo'd the next support/target on $NG as 3.77 on that chart but when referring to the horizontal line at 3.277 that was hit today, as that was the next level below at the time. You can also see the horizontal line/target at 32.99 which was indicated by the first arrow head on UGAZ.

The very fact that those bullish divergences that I pointed out on those charts yesterday did not play out is quite bearish as when divergences fail to play out for a reversal during a trend, the trend is strong & most likely far from over. UGAZ (or any of the other natural gas trading proxies) remains an Active Short Trade with the final target at 31.44 for now.
Dec 20, 2016 4:10pm|Categories: Completed Trades - Short, Gold & Commodities|Tags: , , , |Comments Off on UGAZ Natural Gas Swing Trade Update