Natural Gas Price Forecast – Natural Gas Continues to Look Weak

Natural Gas Technical Analysis

The natural gas market continues to look rather weak and soft and at this point in time, I think you’ve got a situation where you have to look at this through the prism of what’s next and what’s next is more likely than not going to be a situation where traders just simply are looking for the bottom. I think anybody who is paying attention to this market recognizes that it’s in serious trouble but at the same time you also have to keep in mind that it is a market that is getting awfully oversold.

I don’t necessarily think this is a market that wants to bounce quite yet, but I would anticipate that the closer we get to the $2 level, the more likely we are to see somebody jump in and try to take advantage of cheap natural gas. This time of year, is cyclically very poor for this market, and as you know, I’ve been in an ETF for ages. The remainder of my position is about to be stopped out at breakeven, and that’s fine. I took half profits knowing that we could very well struggle to keep afloat later this year. So, all I’m doing at this point is waiting for some type of bounce to get involved again.

But the key here is that I do not have any leverage. Leverage is going to kill you in this market. There’s really no other way around it. So, with that being said, I remain very ambivalent about the market, but I realize that sooner or later value hunters come back in. Once we get through the summer, it’s very likely that we will get the seasonal bounce. And that’s really what I’m hoping for. So, it’s more or less an investment at this point in time, not any type of trade.

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