Natural Gas Price Forecast – Natural Gas Continues to See Noisy Behavior

Natural Gas Technical Analysis

The natural gas markets rallied a bit during the early hours on Monday as it looks like we are trying to recover. That does make a certain amount of sense because quite frankly, we have just kind of fallen apart recently. Now, don’t get me wrong. This isn’t necessarily where you want to jump in and start buying hand over fist. What it is would be a potential relief rally.

So that relief rally is something that you can play, I suppose, if you’re going to be quick enough to get in and out. But I would pay special attention to the $2.50 level as it is a large round figure. And of course, an area that we have seen a lot of action at previously.

This is not the time of year that natural gas does fairly well. So I think you have to assume that there is going to be negativity. There is a hurricane that’s blowing through Texas. There’s probably a little bit of a reaction to whether or not natural gas refining and production will be affected, but that will be temporary. We will still have a weather pattern in the United States that really doesn’t demand a lot out of the natural gas market.

That being said, I do think that later this summer, we will see a big move higher and therefore natural gas is a good investment. But that’s the key word here, investment. I’m involved in an ETF, have been for a long time, will continue to be, may add to the position as well, but I’m not levering my position because I recognize that we are going to see a lot of volatility between now and when we start pricing in the more demand in fall.

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