Natural Gas Price Forecast – Natural Gas Continues to See Support

Natural Gas Technical Analysis

The natural gas markets have gone back and forth during the last several days as we continue to just sit right above the $2.25 level on the whole. Recently, we’ve had some concerns about heat in the South and of course, a hurricane bubbling around Puerto Rico.

So, people have been concerned about the distribution network in the United States, but quite frankly, this is the wrong time of year for it to see some type of massive spike due to that, unless there’s actual damage done. With that being said, on a short-term pullback, I’m more than willing to jump back into the market and add to a position that I already have which is an ETF, so it’s not levered.

That’s the catch with natural gas. You just simply don’t want to trade it with a bunch of leverage, unless you have the ability to track all of the moving pieces in the natural gas market, which quite frankly, the information isn’t that easy to find all the time. It’s not something that you just Google and get real time information that a lot of traders simply look at natural gas through the prism of what’s going on with weather.

And while that is a major factor, and it should be noted that it’s the northeastern part of the United States that has the greatest influence, the reality is there’s also transmission lines, whether or not there’s enough flowing through those.

There’s refineries, there’s extraction. Sometimes there are hurricanes in the Gulf of Mexico, etc. So, it’s a really difficult market to trade in. But what I do know is that there’s a cyclical trade at the end of summer to the middle of fall where prices do rally because people start to prepare for colder weather in the Northeastern part of the United States later in the year. And that’s exactly what I’m setting myself up for.

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