I might add this one as an official trade depending on what happens over the next hour+ before the market opens but just wanted to pass it along as an unofficial trade idea until/unless I decide to do so. /NG (natural gas futures) is currently poised & likely to break out above the descending price channel that has been highlighted in recent videos. My initial & current preferred targets* for /NG range from 2.211 – 2.307 which correlates to a target range of 14.43 – 16.25 on UGAZ (3x long nat gas ETN).
NG 60-min July 31st
UGAZ 60-min July 31st
Keep in mind that nat gas inventories will be released tomorrow (Thursday) at 10:30 am EST. The weekly inventory report typically causes sharp rips or dips in nat gas prices so keep that in mind should nat gas be close to your preferred target or stop before the report tomorrow.
* Unofficial trades will typically list the actual resistance level where a reaction is likely which I refer to as an “unadjusted” price target. Always best to set your sell limit order slightly below the actual resistance level or other price point in which you are targeting & expect a reaction if/when hit.