Nat Gas: No Sustained Upside Reaction to Inventory Drawdown

Nat Gas Inventories showed a draw-down of 69 bcf vs. expectations of a 60 bcf draw-down, but still no sustained upside reaction in UGAZ, which tested yest.'s low at 5.56 a few minutes ago, and is trading at 5.62/63 as we speak. To get any upside traction near term, UGAZ needs to claw its way above 6.20, otherwise, UGAZ will remain vulnerable to still-lower prices that could project into the 4.70/50 area next into a capitulation down-spike.