Natural Gas Price Forecast – Natural Gas Continues to See Momentum

Natural Gas Technical Analysis

The natural gas markets have rallied just a little bit during the trading session here on Monday and at this point in time, it looks like the $2 level underneath is going to continue to be an attractive support level.

You know, are we ready to take off to the upside for a sustainable rally? I don’t know about that, but I do recognize that there are a lot of concerns about Europe having issues with its gas supply again, so maybe. More likely than not, this time of year, you will continue to have buyers come in and pick it up, but I also think that the real rally probably comes later.

That being said, I don’t want to short this market. There’s absolutely no interest on my part in that. I don’t really see how you can do it this low. But on a pullback towards the moving averages, mainly the 50 day EMA and the 20 day EMA, I might be interested to buy a bit. I don’t think that we take off massively between now and the middle of summer, maybe even late summer. But when we do, I’m willing to take advantage of the rally and I have been building a position via the ETF markets so that way I don’t have to worry about the leverage.

Yes, I’m in profit but we’re not where I want to be yet and it’s probably worth noting that commodities in general are rallying and this is an inflation story as well. So, I like this as a potential buy on the dip market, but I would do so with no leverage and just take advantage of it as an investment more than anything else.

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