Natural Gas Price Forecast – Natural Gas Continues to See Strength

Natural Gas Technical Analysis

The natural gas markets have rallied a bit during the course of the early hours on Friday, as it looks like we are going to continue to grind to the outside. The $2.50 level is your next target, and if we can break above there, then it opens up a move to the $3 level. Keep in mind this time of year or sometimes a little later, natural gas starts to take off to the upside as traders are pricing in cooler temperatures in the United States.

We, I think, have passed the worst part of the summer doldrums, and now I think this is more or less a buy on the debt market. We will get the occasional sell-off, and that sell-off will almost certainly be a situation where traders are willing to get involved. And for myself, I have been involved via an ETF.

The ETF makes it so that you don’t have a lot of leverage and therefore you can ride through the volatility. I have no interest in trying to get too cute here and I have no interest in trying to over lever my position. Natural gas is extraordinarily volatile under the best of circumstances. And that’s something that you need to keep in the back of your mind.

With this, I like the idea of finding value when I can, but once we get a massive spike, once we get the first serious cold weather, I’ll collect my profit and just exit the market completely. This is something I do every year. It’s good for a couple of percent of my yearly return because I don’t put a massive amount of my portfolio into this market.

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