Natural Gas Price Forecast – Natural Gas Continues to See Upward Pressure

Natural Gas Technical Analysis

The natural gas markets have broken above the crucial $2 level, and it looks like we are probably going to continue to go higher. All things being equal, the short-term pullback should be buying opportunities that we take advantage of. This is an investment. This is not a short-term smash and grab trade. Keep in mind that supply is still a major issue with natural gas, but perhaps people are starting to realize that there’s natural gas in the Middle East and maybe geopolitical issues come into the foray and drive prices higher.

Nonetheless, I don’t think this is a long-term issue. I do think that you’re looking to buy dips in a lowly levered position, in my case an ETF, and just hanging on to it for the majority of the year as an investment. I think we could go for $2.50, but it’s going to take a while.

Because of this, I look at this as buying on the dips, and I will just gradually add to my non-levered position. Playing a levered position right here relies on momentum picking up and continuing to go to the upside. It’s possible, but it’s not necessarily something that I want to do in a market that quite frankly is oversupplied and has burnt a lot of traders quite often.

Keep in mind that natural gas markets are heavily tilted towards weather in the Northeast and part of the United States. And the contract that you are trading if you are at a CFD broker is almost certainly the Henry Hub contract, which is based out of the distribution point at Henry, Louisiana. Therefore, it’s a very US-centric market. With this, it looks bullish, but I wouldn’t pile in here.

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