Natural Gas Price Forecast – Natural Gas Continues to Rally Overall

Natural Gas Technical Analysis

Natural gas markets have rallied again during the early hours on Thursday as it looks like traders are starting to focus on the idea of autumn in the northeastern part of the United States. As temperatures drop, we should see natural gas continue to rise overall in value as it is most certainly a market that is cyclical in nature.

Because of this, I think you’ve got a situation where traders are going to continue to be more or less buy on the dip. But the $2.20 level is an area that I think you have to pay close attention to as it was massive support. In general, I don’t have any interest in shorting this market, but I also don’t have any interest in jumping in with both feet.

I have been involved in an ETF to keep the leverage down and therefore I can ride through all of the volatility that will almost certainly be a feature of this market. If we can break above the $2.42 level, then it’s likely that we will go to the $2.50 level and then possibly $3. Somewhere around $3, I’ll probably take my profit.

And just leave it at that. This is a market that has a surge somewhere towards the end of summer, middle of autumn every year. And therefore, it’s something I do every year. And that normally is good for a few percent because I don’t put a massive amount of my portfolio into this position. But it is a way to somewhat pad the gains for the year.

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