WisdomTree Natural Gas 2x Daily ETF Forecast

WisdomTree Natural Gas 2x Daily ETF price up 2.76% on Friday
(Updated on May 17, 2024)

LNGA.L Signals & Forecast

Mostly positive signals in the chart today. The WisdomTree Natural Gas 2x Daily ETF holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at £0.0929 and £0.0802. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 43.36%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). WisdomTree Natural Gas 2x Daily has increased volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. Higher liquidity also reduces the general risk.

Support, Risk & Stop-loss for WisdomTree Natural Gas 2x Daily ETF

WisdomTree Natural Gas 2x Daily finds support from accumulated volume at £0.101 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This ETF may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this ETF is considered to be "high risk". During the last day, the ETF moved £0.0055 between high and low, or 5.58%. For the last week, the ETF has had daily average volatility of 4.86%.

The WisdomTree Natural Gas 2x Daily ETF is extremely overbought on RSI14 (80). Normally this may pose a good selling opportunity but since the ETF has broken the trend up, the chance for a major correction due to high RSI is very small as the ETF will find support at the trend broken.

Our recommended stop-loss: £0.0987 (-3.67%) (This ETF has high daily movements and this gives high risk. The RSI14 is 80 and this increases the risk substantially. There is a buy signal from a pivot bottom found 22 days ago.)

Trading Expectations (LNGA.L) For The Upcoming Trading Day Of Monday 20th

For the upcoming trading day on Monday, 20th we expect WisdomTree Natural Gas 2x Daily Leveraged to open at £0.102, and during the day (based on 14 day Average True Range), to move between £0.0983 and £0.107, which gives a possible trading interval of +/-£0.0042 (+/-4.12%) up or down from last closing price. If WisdomTree Natural Gas 2x Daily Leveraged takes out the full calculated possible swing range there will be an estimated 8.24% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at £0.101 (1.46%) than the resistance at £0.106 (2.93%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is WisdomTree Natural Gas 2x Daily Leveraged ETF A Buy?

WisdomTree Natural Gas 2x Daily holds several positive signals and the break up from the falling trend indicates a possible shift of trend as well. The trend doesn't have to go from falling to rising, it may as well go horizontal or even just decrease the earlier fall rate, but we find the risk-reward to be attractive and expect the ETF to perform very well in the short term period.

Current score: 5.426 Strong Buy Candidate Unchanged

Predicted Opening Price for WisdomTree Natural Gas 2x Daily Leveraged of Monday, May 20, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.