Natural Gas Price Forecast – Natural Gas Continues to See Pressures

Natural Gas Technical Analysis

The natural gas markets continue to drift lower, and in this environment, I don’t think it’s a huge surprise. We are in the middle of summer and that typically is the weakest time of year for natural gas. The only thing that typically will lift natural gas is heat waves in the middle of summer. Otherwise, you have a generally soft and squishy market.

That being said, natural gas will rise once we get to colder temperatures and therefore, I’m willing to buy little bits and pieces of an ETF position and build up an investment. Another reason that I think natural gas should continue to be soft is simply because anything and everything with that we are going into a massive recession. If that’s the case, demand will drop and therefore you have natural pressure to the downside.

Anyway, keep in mind natural gas is a major fuel used in producing electricity. So, this suggests that people believe that the economy is going to slow down while the demand for natural gas to heat homes will be very weak. Unless we get a heat wave, I think you’ve got a couple of months before we start to turn things around.

For myself, I’ll buy 15, 20 shares of an ETF occasionally just to build up a position. But again, that’s an investment. That’s not a short-term trade. As far as shorting is concerned, it’s difficult to do it all the way down here. So, I just chose to play the cycle trade and let it go at that.

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