Natural gas prices were around 8% higher in pre-market, but as morning progressed, there was another one of those sporadic severe swings to the downside. UGAZ closed -10.8% @ $32.67, having earlier peaked @ $41.68. Near term outlook remains....unstable
First, an update on Natural gas prices..., weekly
We have two very spiky (bullish exhaustion) candles on the weekly chart, and Gas bulls should be pretty concerned. There is high risk of downside back to the $4.50s..which is a further 10% lower. Of course..that'd equate to 30/35% lower for UGAZ !
As for UGAZ, pretty amazing to see this 3x ETN swing from the $41s in pre-market to the $30s in the afternoon. The natural gas leveraged ETNs are the wild west right now...very tough to guess the price direction from one day to the next.
Here in southern England, there will be at least a few dozen residents less bullish about natural gas than they were last night.
Residential gas explosion - see BBC news