Natural Gas Is About To Ignite

Independent Trader • Oct 30, 2019 at 9:25 AM EDT

Natural gas is on the cusp of a Stage 2 breakout if it can get above the $2.75 level and continue to trade on heavy volume this week.

Natural gas is on the cusp of a Stage 2 breakout if it can get above the $2.75 level and continue to trade on heavy volume this week. Weekly volume is currently tracking at close to 2x the weekly average. Ironically last year at about this time we saw a Stage 2 breakout in natural gas where the price went up over 50% in a short period of time before crashing back down.

Volume in the UGAZ ETF is currently the largest it has ever been over the past few days which is another clue big money could be positioning for a move higher in natural gas. I’ve taken a pilot position in UGAZ and will increase the size if natural gas completes the Stage 2 breakout.

Disclosure:

I am long UGAZ.

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