Natural Gas Price Forecast – Natural Gas Continues to See Pressure to Upside

Natural Gas Technical Analysis

Natural gas markets continue to rally rather rapidly on the four hour chart, as we are now trying to break above the $2.75 level, and essentially the previous swing high. At this point, a lot of it comes down to what’s going on in Europe and whether or not the Europeans have enough supply. All things being equal, this is a market that I think will continue to be very noisy and I think it remains a buy on the dip type of scenario.

For myself, I tend to trade natural gas and currently are in an ETF, so I don’t have to worry about the massive amount of leverage that perhaps a futures contract could bring. If you’re a CFD trader, just make sure your position size is reasonable because cyclically speaking, this is not typically a very bullish time of year. That being said, with the lack of supply in Europe, there is a little bit more upward pressure than usual. And I think that’s part of what we are seeing. In general, this is a market that I think will continue to pay attention to the $2.50 level underneath.

But even if we break down below there, then I’ll just buy more shares of my ETF. I have made about half the profit at this point in time. I’m just waiting to see if I get a good entry point. We certainly did have one recently, but I was afraid that we were going to go a little lower, a little hard to do this at times. The $3 level above remains a massive resistance barrier. And if we were to break above the $3 level, that could be a huge turn of events. But right now, I don’t foresee that happening, at least not in the current environment.

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