Natural Gas Price Forecast – Natural Gas Continues to Look Noisy

Natural Gas Technical Analysis

The natural gas markets have had a little bit of negativity creep into them in the early hours on Tuesday as we had recently shot higher. And therefore, I think it does make a certain amount of sense that some traders may be willing to take profit, perhaps even trying to continue the overall downtrend. I’m not a big fan of shorting natural gas at this point, mainly due to the fact that at this point, you have to ask who’s left to sell. Ultimately, this is a market that has given enough time, I do think we probably see a bit of a recovery and it’s probably worth noting that it’s a very cyclical market. And what I mean by that is that typically this is a market that does better in the fall or as we get closer to the fall as people start to focus on heating homes.

Right now, it’s more or less all about the summer and whether or not we have heat waves. The west part of the United States does have quite a bit of heat at the moment, but when you look at the chart zoomed out, you can see it would make a certain amount of sense to pull back here. I am an investor, not a trader in this market.

You cannot be a trader. It’s simply not a tradable market from the retail side because of all the various factors that go into it. However, I do think that as we drop back, I will probably begin to add to an ETF position because it has no leverage. And therefore, I can take advantage of later this year when prices rise due to heating demand.

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