The Best Way to Use Leveraged ETFs Like BOIL in Your…

The Best Way to Use Leveraged ETFs Like BOIL in Your Natural Gas Trading Strategy, Plus Key Price Levels to Watch

In a recent Market on Close livestream, John Rowland, CMT, tackled a question on natural gas into year-end — and his breakdown is one traders won’t want to miss.

Right now, natural gas (NGX25) is stuck in a sideways range near $3.20. But John sees the potential for major movement in either direction as we move deeper into winter.

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Key Price Levels

Upside targets: $4.50–$5.00 as base case, with a possible spike toward $6 if catalysts hit
Downside floor: ~$2.85 as near-term support
Current range: ~$3.20 (the “shoulder season” lull between summer and winter demand)

Catalysts That Could Move NatGas

Bullish drivers:

Colder-than-expected winter weather in the U.S.
Escalation of sanctions against Russia
Energy supply disruptions in Europe
Rising demand from data centers & electricity generation (45% of U.S. power still comes from natgas)

Bearish drivers:

Warmer winter, reduced heating demand
Stable LNG exports and no geopolitical shocks
Oversupply in U.S. production

Trading NatGas: Futures & ETFs

For traders who want exposure, John flagged the ProShares Ultra Bloomberg Natural Gas ETF (BOIL), a 2x leveraged fund, as a short-term vehicle:

“I would play BOIL on a short-term momentum basis. Not as an investment vehicle.”

That’s because leverage + daily resets make products like BOIL and its inverse counterpart, the ProShares UltraShort Bloomberg Natural Gas ETF (KOLD), better for tactical trades as opposed to long-term holds.

Want more diversified exposure? Use Barchart’s ETF Finder for Energy to screen for ETFs focused on natural gas and energy equities.

And don’t forget to track pricing and contracts on Barchart’s Energies Futures page.