Traders looking to buck the trend can utilize inverse or bearish ETF options to hedge bets in the coming months. For instance, the VelocityShares Daily 3x Inverse Natural Gas ETN (NYSEArca: DGAZ) seeks to provide the daily inverse 3x, or -300%, performance of the NYMEX natural gas futures. The ProShares UltraShort Bloomberg Natural Gas (NYSEArca: KOLD) provides the daily inverse 2x, or -200%, performance.
SEE MORE: Natural Gas ETFs Surge on Smallest Inventory Injection in a Decade
“Prices have rebounded above the 20-day moving average, and we are starting to see trading volume increase as prices move higher. The 14-day RSI has turned neutral, with a current reading of 57.87. The high made on July 29 at 2.947 looks to be the next resistance level for the October futures, with support seen at the August 12 low at 2.580,” adds OptionsExpress.
For more information on the natgas market, visit our natural gas category.
United States Natural Gas Fund
