Velocityshares 3X Long Natural Gas ETN (UGAZ)

[dude iligence]

Charts from 2015-2016 cont.





NG didnt hold the 50ma, sliced thru $2.25 if $2.2 doesn't hold downside could cont.


Last month the contango spread was about .03 frt to fwd month today its about .20. In fall 2015 it was about .20s. 2015 supply went above 4 trillion it wont go that high this year but the production capability is greater. NG will be at the bottom of the current trading range for the report tomorrow. Don't be surprised to see report above estimates. NG had a gap around $2.02 that was filled in Dec 2015. It took less than 3 weeks to drop from $2.25 to $1.68 in Nov- Dec 2015. Building supply, warm mild weather, large contango, big short position.