Natural Gas Price Forecast – Natural Gas Continues to Look Volatile

Natural Gas Technical Analysis

Natural gas markets have shown themselves to be a little bit weak in the early hours on Thursday as perhaps we are getting stretched.

There is a heat wave coming to the United States in the second half of June that people are trading right now. But the reality is, if and when that disappears, and if it will, natural gas markets will probably fall rather hard. So at this point in time, I don’t like chasing it. Even though I do have a position in the natural gas ETF, I have collected half of the profit from that move and have just let it run since. At this point, I’m okay with maybe cutting another half of the position, leaving me with just a quarter of the position, looking to buy dips, if and when we get that significant pullback. After all, this time of year isn’t typically very strong for natural gas without a heat wave.

So, with that being the case, it’s worth noting that you should get another opportunity later in the summer to start collecting bigger positions. For short-term trading, natural gas is miserable because it is so volatile. And of course, the leverage can wipe out a retail account very quickly. This is why I use ETFs. If you do not have the ability to trade ETFs, then I would tell you essentially that whatever you think the position size is you need to trade, you should probably cut it in half.

I don’t necessarily want to short this market right now because obviously momentum is a wild thing and it can last much longer than anticipated, but I would be interested in buying dips. However, I’m currently looking to start building another position up from my core position, somewhere sub $2.50. If we could take out $3 significantly then I think the market has a real shot at going much higher, but it’s probably going to need some reason to make that happen.

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