Natural Gas Price Forecast – Natural Gas Continues to See Support Underneath

Natural Gas Technical Analysis

The natural gas market has shown itself to be a little bit noisy during the early hours on Friday, but quite frankly, I don’t know that much has changed. So, with that being said, I think you’re still looking for a scenario where value hunters come in and try to pick up natural gas, but you can’t do so with a massive amount of leverage due to the fact that it’s far too volatile.

The $2 level underneath is a large round psychologically significant figure that a lot of people will be paying close attention to. I think at this point investing in a low leverage situation, be it ETF or a small CFD position is okay but recognize the fact that this is a very quiet time of year and typically this is a market that doesn’t do that well in the summer. However, eventually we do see heating demand pick up later in the year and of course natural gas is one of the major beneficiaries.

If we were to break down below the $2 level, I think it’s possible that we could go looking to the $1.90 level, but I don’t know that we get much more negative than that. For myself, I’m starting to build up another ETF position, and that means that I don’t have a bunch of leverage and quite frankly don’t care day to day what happens. When it comes time to price in heating demand, I’ll just simply sell my position, collect my profits, and move on.

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