Natural Gas Price Forecast – Natural Gas Continues to Look Miserable

Natural Gas Technical Analysis

The natural gas market has been very negative for some time, and I think that probably will continue to be the case in the short term. Now, keep in mind that the market also has to pay attention to cyclicality. And what I mean by that is that the market will continue to be one that has to focus on the fact that there won’t be a lot of demand coming out of America. At this point, confirmation of a potential turnaround would be if the market could break above the $2.30 level, which was the most recent swing high.

You would just simply be looking for something like a zigzag or an ABC123 pattern. I do think at this point we’re likely to bounce around between $2 and $2.30, so I do think there’s value to be had here, but I don’t use leverage. I use CFDs or, more often than not, I’ll use an ETF, and that’s what I’m in right now. So, I’m down a little bit in it, but really not enough to be concerned. It’s about one and a half percent of my portfolio.

Natural gas is not something retail traders should be trading anyway, but if you do, there are specific ways to do it. You have to recognize this as a US contract. So, it really doesn’t matter what happens in the rest of the world most of the time. And it is one that is a commodity that we find in the drinking water here in the U.S. I mean, natural gas is not rare by any stretch.

So, you tend to follow seasons and as we get late in the summer, the natural gas markets are focusing on futures contracts for the winter, and therefore price rises. Your CFD will follow along with that. Keep an eye on weather in the United States. If we get another heat wave, that could boost prices, but that’s a short-term phenomenon. Longer term, you’re building up a position to sell as an investment later this year.

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