Uncorrelated trades continue to pay off as an effective way to diminish portfolio risk in this messy market environment.
A few days ago, a trade was put on United States Natural Gas Fund ETF $UNG for Breakout Multiplier members.You can see the details here.
Fast forward to today, and the value of those options have doubled. This gives us and our members the opportunity to take half off the table and enjoy a free ride.
While we are able to reduce our risk in the trade, and always want to in these cases, we still like Natural Gas a lot… maybe even more than we did when we put the trade on initially.
Here’s a look at natty gas putting the finishing touches on a short-term bearish-to-bullish reversal within the context of a longer-term rounding bottom formation.
The recent rally has pushed prices decisively through the upper ends of a tight range, which coincides with the AVWAP from the year-to-date and 2023 highs.
We couldn’t think of a more logical place for bulls to take control.
We’re also seeing a monthly momentum crossover, which is a reliable indicator for spotting changes in the long-term trend.
Here’s how that looks:
Price is not only finding its footing and moving higher off a key support level, but momentum is giving us a major buy signal.
Notice how this crossover worked when we got it at this same $1.50ish level back in 2016 and 2020.
Those were some great times to get involved. We don’t think this time will be any different.
Natty gas is leaving the station.
Get on board or get left behind.
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