Natural Gas Price Forecast – Natural Gas Continues to See Lackluster Moves

Natural Gas Technical Analysis

The natural gas markets have shown a lot of choppiness over the last couple of days. But when I look at the weekly chart, it’s worth noting that the last two candlesticks have been shooting stars. It is because of this that I think we continue to slump overall. And of course, this is not exactly the strongest time of year for natural gas historically.

That being said, I do know that sooner or later natural gas will take off due to the fact that we’ll get colder temperatures in the Northeastern United States, and it will consume a lot of natural gas. We do have plenty of natural gas and storage right now in America, and that’s part of the problem, but furthermore, it’s just that the demand is so low, if we are going to see a severe lack of demand due to a shrinking economy, that also puts downward pressure.

But generally, what I do in this market is buy a non-levered position during the summer and add to it gradually with little bits and pieces and do it using an ETF, but you can do it with a CFD position, and then just collect my profits later on. I never make it a big part of my portfolio. Natural Gas is far too volatile but you know, something like a two or 3% gain for my portfolio every year is padded by the natural gas markets. It’s an easy trade to take because sometime in the autumn the price will spike and it’s not really uncommon to pick up a 50 or maybe even 100% gain. it’s just a matter of being patient. If you are highly leveraged to the market, though, you just can’t do that.

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