Natural Gas Price Forecast – Natural Gas Continues to See Pressures From Above

Natural Gas Technical Analysis

The natural gas markets pulled back just a bit in the early hours on Wednesday, as the $3 level continues to cause a little bit of havoc. That being said, this is a market that at this time of year is typically bullish.

So, I look at pullbacks as potential buying opportunities. Keep in mind, there’s been a couple of hurricanes in the Gulf of Mexico, so that obviously has been felt in the price of natural gas. But at the same time, I just read a report that the United States produced a record amount of electricity over the last year using natural gas. So that certainly shows that natural gas is going to continue to be somewhat in demand.

The time of year is typically bullish, not only due to the end of hurricane season, but the fact that colder temperatures are coming to the northeastern part of the United States. That of course drives up demand and therefore price. Keep in mind that the CFD that you are trading in the natural gas markets are based on futures contracts. And therefore, you’re actually thinking about winter at this point.

Short-term pullbacks, I do think find plenty of support near the $2.80 level, and then again at the $2.65 level. On the upside, I think that the $3.15 level will continue to be a little bit resistive, but I think we’re basically just digesting a lot of the gains that we’ve recently seen, and when you look at the action over the last two weeks or so, we have seen a shot higher, but it does look a little limp, so I think it wouldn’t take too much to cause the pullback to occur, which of course I think only ends up offering value.

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