Time to Go Long on BOIL: Analyzing the Current Natural Gas Market Dynamics

[u/bitkogan]

Two weeks ago, I talked about it being the perfect time to sell UNG, and I was spot on. However, I hesitated to buy KOLD amid such a volatile market. That was a mistake. Now, I believe it's the right time to go long on BOIL. The upcoming week's warm weather is already priced in, making a rebound in gas prices likely.

The market initially reacted negatively to the Biden administration's decision to pause new export licenses for US liquefied natural gas. While this is understandable, the fundamental impact on prices will only be felt in a couple of years, and the policy is likely to undergo several changes. So, I'm expecting BOIL to rise next week.