The natural gas has experienced serious price rise due to the various reasons, among which are cold weather, strong demand from China, and limited supply from domestic producers. But among them two most important factors are - new US policy towards weak $USD and backwardation on the natural gas market. In my opinion, all these factors will keep pushing the price up, at least till the end of February.
As a result, DGAZ is in downtrend, which is confirmed by 20 EMA and MACD. If you are a bull by your nature like me, it would be a wise decision not to trade this equity for at least one month.
As a result, DGAZ is in downtrend, which is confirmed by 20 EMA and MACD. If you are a bull by your nature like me, it would be a wise decision not to trade this equity for at least one month.
评论:
It appears to me that I was completely wrong with my analysis and didn't take into consideration the seasonal effect of this equity. Due to significantly improved weather conditions, the cost of Natural Gas rapidly decreased and therefore, DGAZ had changed its trend.