Natural Gas Price Forecast – Natural Gas Continues to Look Bullish

Natural Gas Technical Analysis

The natural gas markets have pulled back just a bit during the early hours on Monday as we continue to see a lot of choppiness. That being said, there is yet another hurricane building in the Gulf of Mexico. So, your guess is as good as mine, as whether the weather or not is going to disrupt production any further. But this time of year, does tend to be fairly positive anyway, as we are starting to look for cooler temperatures.

So, this pretty much makes it impossible to get short of this market. Pullbacks should offer value and that’s exactly what I’m looking for because quite frankly, I don’t want to pay too much for this contract. It gets to be very expensive in the futures market and if you’re more like me, you tend to trade it from a swing trading perspective anyway. I happen to use an ETF because I can sit through the volatility and not worry about it. However, if you don’t have that ability, then you can use a small CFD position.

The idea is you don’t want to dance around the futures market because it moves on the latest weather reports, transmission reports, and production reports, a lot of information that retail traders just simply don’t have access to. If we do pull back, I think somewhere around the $2.85 level, there should be significant support, but it is probably worth noting that the $3 level is currently being tested and so far, it is somewhat holding.

I do think we have a little bit further to go to the upside before the winter because eventually it does sell off. You have to keep in mind these are futures contracts you’re basing your trade on. So, it’s actually looking out into the future. This is a one-way trade, but that doesn’t mean that you chase it all the way up here.

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