Natural Gas Price Forecast – Natural Gas Continues to See Support

Natural Gas Technical Analysis

The natural gas market has pulled back just a bit during the course of the early hours on Tuesday as we continue to see a very bullish market, but one that got a little bit ahead of itself. The $2.95 level looks as if it is a bit of a barrier and I suspect that the real concern is near the $3 level as we look at that as a large round psychologically significant figure.

A lot of the upward pressure is due to the concerns about a tropical storm bringing down the manufacturing of natural gas in the Gulf of Mexico. But we also have the colder temperatures coming later this year and therefore, many of you know I have already been long of this market in an ETF. I have taken a little bit of profit at this point and moved my stop loss to break even, which coincides with roughly $2 and 15 cents or so. So, with that being said, I am waiting to see if we can break through the $3 level, and I would move my stop loss even higher.

I do suspect that we are probably going to get some type of pullback in the near term, and that might offer an opportunity to buy more of the ETF. As far as a leveraged position is concerned, to chase it all the way up at this level is a great way to lose money and blow your account up, so keep that in mind.

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