Velocityshares 3X Long Natural Gas ETN (UGAZ)

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Short-covering Rally Fueled by Supply Worries - Natural Gas Price Fundamental Daily Forecast –

4 hours ago

July Natural Gas futures are getting a lift early Monday, underpinned by the news that Saudi Arabia and three other sovereign nations cut diplomatic ties with Qatar.
This is significant news, according to CNBC, because Qatar shares the world’s largest gas field, South pars, with Iran.
July Natural Gas is trading at $3.035, up $0.038 or 1.27% early Monday.
According to CNBC, Saudi Arabia along with Bahrain, UAE and Egypt cut diplomatic relations with Gulf Arab state Qatar on Monday, because of Doha’s ties to terrorism and the need to maintain national security. Additionally, the countries ended all sea and air contacts with Qatar.
CNBC also said that Saudi Arabia’s official state news agency, citing an official source, said the kingdom had decided to sever diplomatic and consular relations with Qatar “proceeding from the exercise of its sovereign right guaranteed by international law and the protection of national security from the dangers of terrorism and extremism”.

The surprise move by the Saudis and the other nations is causing a little unrest in the natural gas market early Monday while coming at a time when the July futures contract is trading under severely oversold conditions.
The early price action suggests that short-covering is taking place and perhaps some light speculative buying. If the rally gains traction, we could see a rally back to the major Fibonacci target level at $3.124.
If the rally fails to draw enough attention to fuel a rally into the upside target then new shorting pressure may re-emerge with the next major downside target the February 28 bottom at $2.888.
According to natgasweather.com, natural gas demand will be near to slightly stronger than normal.


https://www.fxempire.com/forecasts/article/natural-gas-price-fundamental-daily-forecast-short-covering-rally-fueled-by-supply-worries-412308

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