Velocity Shares 3x Inverse ETN Natural Gas (DGAZ) declined almost 9% on Tuesday as natural gas futures for March ’15 delivery rose 7 cents to settle at $2.754. The decline came as DGAZ failed to break upper resistance at $8.43.
Despite the decline, the upward channel for DGAZ remained in tact as DGAZ closed Tuesday at $7.53. Traders of DGAZ will look for the ETN to hold this level of support on Wednesday in order for the upward channel to continue.
A break of this upward channel would likely see DGAZ test $7.17, which is its 20-Day moving average. Any move to the upside would first face resistance at $8.06 and then again at $8.43.
To contact the reporter for this story, please email firstname.lastname@example.org.