Natural Gas Price Forecast – Natural Gas Continues to Chop Back And Forth

Natural Gas Technical Analysis

The natural gas markets are hanging around the 20 SMA at the moment on the four hour chart as we try to sort out where we are going next. It’s probably also worth noting that we are hanging around the $2.50 level, and this is an area that’s been very important. We have sold off quite drastically over the last couple of days, but we still aren’t making a fresh new low. I think at this point in time, it makes a lot of sense that we could see a certain amount of buying pressure underneath.

And I do think value hunting comes back into the picture. Remember, this is a time of year that natural gas typically doesn’t do well. And a lot of what we’ve seen here has been a knock on effect by the fact that Europe doesn’t get Russian gas anymore. We’re back to that game. Not too long ago, earlier this week, we’ve had Dutch gas rise by 13 percent in the morning. So that’s pretty quick.

That obviously has people thinking that they may be coming over to the United States to buy natural gas to ship. Either way, I trade this market through the prism of an ETF, so I don’t have to worry about leverage. Short-term pullbacks offer a little bit of value that I’m willing to add to an ETF position, and I’m probably going to sell it in fall.

It’s just way too noisy right now to get overly levered. And therefore, I think you are trying to build up an investment, not a trade. The $3 level will continue to be a major ceiling. I don’t think we break that anytime soon apart from some type of major geopolitical event. And let’s be honest, that could happen. So, at this point in time, I’m hoping for a little bit of a dip so I can buy more shares in this ETF. If you do use the CFD market, do it with almost no leverage. The leverage is going to get you in trouble in this market.

For a look at all of today’s economic events, check out our economic calendar.