Natural Gas Price Forecast – Natural Gas Continues to See Buyers

Natural Gas Technical Analysis

The natural gas markets have been very bullish for some time, and it looks like Friday is going to continue to grind higher. Natural gas, of course, is getting a boost due to the fact that it is a cyclical trade. And we are heading to the busiest time of year for demand as the markets continue to look at colder temperatures in autumn as a driver yet again.

This is a market that I think we’ll continue to look at the $2.50 level underneath as support. And of course, the $3 level above as a potential target. I expect to see a lot of volatility. I expect to see a lot of choppiness, but I do think we continue the overall grind to the upside. All things being equal, this is a market that you want to keep your leverage somewhat down just due to the volatility. But I do think that, for example, if you own an ETF that follows natural gas like I do, this is a great investment until we spike. We always spike sometime when temperatures plunge in North America. And generally, at that point, I take my profit. I ignore natural gas for six months.

I analyze it obviously because that’s part of what I’m paid to do, but for my own personal account, I play this trade every year. I’ve been in this since about $2.16, but I’m not overly leveraged to give you an idea of how little I try to put into this very volatile market If it gets to $3, I’ll probably make about a 7% gain, which is pretty good Considering I did it on the last run higher as well. So, this does add a lot to the account, but you have to be able to hang on to the volatility. And that’s why I take the leverage out of the position.

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