Natural Gas Price Forecast – Natural Gas Continues to Drop

Natural Gas Technical Analysis

The natural gas market has fallen again during, I would say thin holiday trading on Thursday as the Americans were away for Independence Day. That being said, we are now below the support and we have formed a large M pattern. At this point, we could send the market down to the $2 level, so be cognizant of this. I’m a buyer of this, but not here. Let it fall. Typically speaking, late in the summer, we start to pick up momentum again due to the autumn coming. $2, of course, is a large round psychologically significant figure. And as you know, I’ve been long of this market for some time.

I went ahead and pulled the ripcord today, so now I’m flat. I made some money on the ETF. Didn’t make anywhere near as much as I could, but I wanted to give it as much room as I could. At this point, the closer we get to $2, the more likely I will be to start building up an ETF position again, but ETF because it doesn’t have leverage. That way I can hang on to this for a while. I don’t care what happens day to day. It’s very stress-free.

Those of you trading CFDs just use a small amount for your position. People who go into natural gas and over lever tend to lose their accounts. That’s no different now. I can imagine a lot of people chase this all the way up to the $3 level and are now begging for a bounce to save their account. So always keep that in mind. There is a ton of information that you have to be privy to in order to trade natural gas and those of us who are retail traders for that matter, have lives, we just don’t have that kind of time. So it’s something that you tend to swing trade and you do so very cautiously.

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