Monday was a record volume day for the triple ETN UGAZ.
These record volume days on the triple ETN's/ETF's often mark cycle turning points.
Natgas printed its lowest point on day 34 -- which placed it in its timing band for a daily cycle low. The rally out of the day 34 low was stopped at the triple resistance from the converging 10 day MA, 50 day MA and the 200 day MA. That sent Natgas lower on Monday to undercut the day 34 low. Monday was day 40 - which is very deep in the timing band for a daily cycle low. There are bullish divergences that are beginning to develop on the oscillators which often precede the cycle low. And Natgas also printed a bullish reversal on Monday, which eases the parameters for forming a swing low. A break above 2.23 would form a swing low to signal the new daily cycle.
In the Mid-Week Update I plan to discuss where Natgas is in its longer term, intermediate cycle.