Natural Gas Price Forecast – Natural Gas Continues to Grind

Natural Gas Technical Analysis

Natural gas markets continue to meander in the same area that we’ve been in for a while. At this point, there’s not much to say other than we are going to continue to go back and forth. Underneath, we have the $1.50 level, which I think is a hard floor from a longer term standpoint. And because of this, it’s difficult to imagine a scenario where we break down below there, because quite frankly, we are getting close to the point where drillers will just walk away.

And if nobody’s producing, obviously that causes a disruption to the supply and therefore the overall pricing mechanism. In general, I think this is a market that if it dips a little too far, you’re looking to buy in, but you don’t want to hang on to it for any significant amount of time.

If we can break above the $2 level, that could change some things. And it’s worth noting that for myself, I’m a swing trader, so I’ve been using the UNG ETF in the United States, and I don’t really care what happens for a while. I’ll just take my profit when prices inevitably rise. But I can only say that because I’m not paying swap and I’m not levered. So, keep that in mind. You have to pay attention if you’re trading CFDs, whether or not you are paying any type of swap. In that environment, things become a little trickier, but we are in an area that going back several years has been like a hard floor in the market.

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