[UGAZ] update

Having made an early bottom call on Nat gas which went bust, I was back in the near term bearish camp in my previous post looking for more evidence that a real bottom had been put in.



Because of the action since then I had to change the support and resistance lines of the falling wedge but I think today we begin the throw under which will likely lead to a bottoming in the shares followed by a rapid reversal upward.  Everyone and their dog is short nat gas right now.  It doesn't mean that it can't go lower but it does typically mean that when a reversal comes it will be sudden.

 

On the triple inverse side, DGAZ looks to be in a deep vee 2nd.  I do not see it making a higher high here and so I expect a reversal to begin any time now.  Maybe even today and likely before mid week.  So I am again looking for an entry point on UGAZ.  As usual, pick an EW-defined entry point and then use stops.  This is really just gambling after all.