Natural Gas Price Forecast – Natural Gas Continues to Look Tired

Natural Gas Technical Analysis

The natural gas markets started to recover a bit on Friday, and I do think this makes a certain amount of sense, as we have been so negative as of late. That being said, I still don’t think natural gas is ready to take off for a bigger move.

It’s cyclically the wrong time to see this as the natural gas demand will almost certainly be weak at best this time of year. We did have a heat wave in the United States. We priced that in, ran up the market, but now it looks like we’re just trending lower in the short term. Longer term, I do like the idea of buying natural gas on dips.

And I do so in my ETF because the ETF allows me to do this without a massive amount of leverage. So, with that being said, I am buying 10 to 15 shares here and there. Building up a position, recognizing that sometime later this year we’ll have to worry about cold temperatures and that will send the market much higher. The $3 level above is obviously an area that a lot of people will be paying attention to.

And if we can break above that, then $3.50 could be your next target. However, I do think that eventually we will test the $2.50 level for support. I had gotten involved in this via an ETF a long time ago. I took half off and now I’m just waiting to see if we get closer to the $2.50 level to add to my position.

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