Aggressive, risk-tolerant traders can exploit plummeting natural gas prices with leveraged exchange traded products such as the VelocityShares Daily 3x Inverse Natural Gas ETN (NYSEArca: DGAZ), which seeks to provide the daily inverse 3x or -300% performance of NYMEX natural gas futures. The ProShares UltraShort Bloomberg Natural Gas (NYSEArca: KOLD) provides the daily inverse 2x or -200% performance.
“Looking at the daily chart for the lead month February Natural Gas futures, we notice prices have given up all of the gains seen since the mid-December rally, which took the lead month contract to over 2-year highs. Now we see that prices have fallen below the 20-day moving average (MA) but are trying to find support near the longer-term 200-day MA,” notes Options Express.
UNG resides just 3.3% above its 200-day moving average and is nearly 15% below its 52-week high.
For more information on the natgas market, visit our natural gas category.