Cycle Trading

Natgas printed a bullish reversal on Tuesday.

Tuesday was day 17 for the daily cycle which places Natgas in the early part of its timing band for a daily cycle low. The previous daily cycle ran long. And since cycles often balance a longer cycle with a shorter cycle, that increases the odds that Tuesday marked the daily cycle low. Natgas still needs to form a swing low and break above the declining trend line to confirm a new daily cycle. A break above 2.92 forms a daily swing low. In Wednesday’s Mid-Week Update I plan to discuss weekly Natgas cycle and how once a daily cycle low forms that it could also form an intermediate cycle low.

Now lat’s take a look at the volume on the triple leverage fund – UGAZ.

The volume on UGAZ has surged to an all time high. And you can see that previous surges in volume has often coincided with a bottom.