Nat Gas Deep Correction Ended?
Needless to say, today's less-than-expected inventory build caught the natural gas market VERY short, which has triggered a mini-panic to cover positions. Whether or not Mr. Market is getting long now is anyone's guess fundamentally, but technically my work is screaming that this week's lows ended a deep correction of the initial advance of an intermediate-term bull phase (1.902 to 2.759).
If accurate that means that natural gas prices are in the early stages of a revisit of the May highs. If that happens, then the shorts will be on the verge of a major panic to cover (unlike today's mini-panic), which will have significant implications for BOTH price and supply/demand perceptions.
That would be bullish for holders of the U.S. Natura Gas Fund ETF (UNG) and ProShares Ultra DJ-UBS Natural Gas (BOIL).