NG Supply Persists, Outstrips Demand
Natural Gas (NG) supply is the story here. As NG production remains high per EIA reports, on top of the already high supply, NG prices have no where to go but down. We capitalize on this supply-demand story with a 4-hour period chart corroborating our swing trade position.
Although we would rather be building a long Natty Gas position, moving into the fall and winter demand season, it looks like KOLD is the play. KOLD is the etf which can be used to short Natural Gas.
Below you can see Price and Indicator in agreement to the upside in KOLD, which a pull-back we waited for now presents.
Our trigger to BUY the KOLD etf is a pull-back in Price to 37.5 ish, while Stochastic pulls back to the 25. This leaves Stochastic in the Upper Operating Area (UOA) which is bullish KOLD. And of course, the same construct would show Stochastic in the Lower Operating Area (LOA), to signify a bearish outlook for BOIL, the etf we would otherwise use to be long in Natural Gas.
