Petrochina announced on Sunday that they have found a new and VERY large gas deposit. If true, this means natural gas prices will fall… in return, inverse funds like DGAZ (pictured in my tradingview.com chart) will rise. DGAZ is a 3X inverse of natural gas.
Notice, on the chart DGAZ bounced off pretty good support, and gapped up last Friday. Usually, gaps get filled. But, when they get filled is anyone’s guess. However, it looks like this gap was a “retest” gap, and already came back down to retest. I will be watching natural gas at futures open this morning. I may enter a long position on DGAZ, or short /NG.
Remember… DGAZ is an inverse ETF. Inverse funds profit when the underlying goes down, and vice versa when the underlying goes up. Natural Gas futures (/NG) is not an inverse. /NG is the actual natural gas price.