Loading ...Something is Brewing in Nat Gas
Was noticing some very interesting volume activity today in UGAZ; 11:20am and volume is already at an all-time high of 54MM shares ahead of the NG storage report at noon. I’ve been looking at this chart for a while thinking “Now this is what a capitulation bottom looks like!”. These volume spikes on little price movement are often very telling. I like the gap down bullish flag on monster volume.
Nice chart. Conclusion..?
This could be a set up for a reversal. It’s simply worth keeping on your radar for a tradable upside move.
Hope not, in DGAZ right now.
Grad – my short term stuff says you should be safe (for a few days at least).
And my long term stuff says DGAZ should be fine too for the next few months.
The problem is that we’re likely due for a countertrend bounce (not a bottom) that will set up DGAZ again down the road a bit and these leveraged etf’s are not ones to ride out squalls in.