Tuesday, June 25, 2019

NG sh squeeze highly likely

With G-20 upon us and trade deal uncertainties abound, and the largest short position in NG futures in 3 years, on top of a surprisingly warm short-term weather prediction boosting prospective air conditioning demand that was later tempered, NG is certainly in a position to move higher.

After breaking through the 20,2 Bollinger lower band on the highest down-day volume since early Feb (which also created a tradeable intermediate-term bottom), UNG gapped higher yesterday leaving fresh large short positions from the previous week under water.

I would expect UNG to test $20.50 in the next few days/weeks.

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