Natural Gas Price Forecast – Natural Gas Continues to Power Higher

Natural Gas Technical Analysis

The natural gas market rallied to kick off the trading session on Friday as we are now well above the $2.50 level and now it looks very much like we are going to continue to go much higher. All things being equal, this is a market that has just broken above the neckline of an inverted head and shoulders and that does suggest that there is plenty of buyers.

There are a lot of concerns about the hurricane and whatever damage it could have done to production but really, I think what we’re seeing here is people are playing an arbitrage trade, the crude oil markets being shorted while the natural gas markets being bought into due to Chinese switching over major rigs and buses, things like that to natural gas from crude oil.

All things being equal, this is a buy on the dip type of situation. And I do think that we are heading into fall, so it makes a certain amount of sense that we would see a lot of buyers coming in to pick up bits and pieces of a position I actually do it with an ETF and I think given enough time we could go looking To the three dollars level and in that point I might start to take some profit either way though. I keep my Leverage pretty low that way. I don’t get too wiped out on a sudden pullback which happens from time to time in this market.

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