DGAZ Upward Channel Unbroken Despite Nat Gas Rally

DGAZ Upward Channel Unbroken Despite Nat Gas Rally

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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 steve@natgasinvestor.com.

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