Natural Gas Price Forecast – Natural Gas Continues to Recover

Natural Gas Technical Analysis

The natural gas markets continue to show signs of life as we initially came back a little bit during the early hours on Monday, only to turn around and show signs of strength. There is a bit of a heat wave going on in the Western part of the United States, so it’s possible that may drive prices higher. But at the same time, I would also make an argument that perhaps one of the things that is really starting to come to the forefront is the fact that we had plunged so much. And with that being the case, I think you have to look at this through the market of whether or not we are finding value and cheap gas as it were.

Right now, I think you’ve got a situation where the market has just fallen far too much to really continue shorting, if nothing else. From a historical point of view, we could very well drive all the way to the $3 level and still, for the most part, be in a sideways market that just doesn’t really have anywhere to be. If we can break above the 200 day EMA, that opens up the move to much higher pricing. The four hour chart of course looks very bullish.

The question now is, will we get a little bit of a pullback in order to buy cheap gas? I do think that will be the case. So, I’m patient. And I also make sure I trade this with, in my case, no leverage, I use an ETF. But if you choose to use the CFD market, make sure you’re not swinging a big position because this is more of a grind higher this time of year than anything else.

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