Natural Gas Price Forecast – Natural Gas Bounces Around

Natural Gas Technical Analysis

The natural gas market has gone back and forth during the course of the last couple of weeks, and now it looks like we are trying to sort out where to go next. All things being equal, if we do break above the $2.25 cents level, then we could go higher, perhaps reaching the $2.36 level on some type of rally. That being said, if we were to turn around and break down below $2.15, then I think we could drop all the way down to the $2 level. The $2 level, of course, is a large round psychologically significant figure, and I think a lot of people will be paying close attention to it as a potential buying opportunity.

Remember, this is a market that is very cyclical. And this time of year, there isn’t much in the way of heating demand. If we get some type of massive heat wave and it is extraordinarily hot, we could see a little bit of a boost due to electricity demands for cooling the homes down, but really at this point in time, I think we’ve got a situation where we do find buyers on dips trying to build a position for the inevitable shot higher as colder temperatures come later in the year.

As you know, I am involved in ETF positions, so therefore I’m not levered. But if you don’t have that ability, small positions that you can hang on to and not really worry about on a day-to-day basis might be the way to go and invest in what will be the shot higher a few months down the road and take your profit.

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