Velocityshares 3X Long Natural Gas ETN (UGAZ)

[researcher59]

Celsius thinks NG could hit as low as $2.25/mcf in the coming weeks of shoulder season and associated large EIA storage builds.

If NG hits 2.25 that would put UGAZ at around $18. So beware, there's plenty of downside potential left for UGAZ if the bearish scenario of ongoing large weekly builds plays out ....

Good luck to all.

Celsius -

I feel that a bounce to the $2.60-$2.65/MMBTU range is certainly possible, but above this level, the short sellers will likely start pouring back into the trade. Barring a sudden surge in LNG exports or a larger-than-expected year-over-year increase in Powerburn once we start to see more consistent Cooling Degree Days, any bounce will be of the deadcat variety and I could easily see natural gas trading as low as $2.25/MMBTU before the end of the shoulder season. While I am currently long the sector, this will likely be a short-term trade on a bounce and I will look to get back short again above $2.65/MMBTU.