Natural Gas Price Forecast – Natural Gas Continues to See Buyers on Dips

Natural Gas Technical Analysis

The natural gas markets have been somewhat noisy in the early hours on Tuesday, as we continue to see a lot of volatility. All things being equal, this is a market that I think needs to pay close attention to the $3 level, due to the fact that it is a large, round, psychologically significant number, and of course, an area that has been noisy a couple of times in the past. If we can break out to the upside, then we could challenge the $3.15 level again, but at this point in time, if we break down, then we would have to look at the $2.85 level as a potential floor.

All things being equal, this is a market that is paying close attention to the Gulf of Mexico and problems with production as we have another hurricane. But we are also paying attention to the cooling pattern in the Northeastern part of the United States as we head into autumn, that does drive up demand.

So, I think we’re still in a very positive market, but at this point in time, it is easier to simply buy the dips than try to chase the market. Longer term, we will eventually collapse. That’s what natural gas does. It’s a very volatile market due to the fact that it moves mainly on weather, but also short-term demand due to that weather. So, with all that being said in the short term, it looks like we are going to go higher.

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