Natural Gas Price Forecast – Natural Gas Continues to See Troubles

Natural Gas Technical Analysis

The natural gas markets fell quite a bit during the early hours on Thursday. As we continue to see traders look at this through the prism of whether or not there’s going to be enough demand. At this point, inventories are fairly full. And of course, it’s a very low time of demand for the year as traders are focused more or less on heating and not so much heat waves. And there is a significant amount of heat in the United States right now, but it is also short lived. So, I think another thing that people are paying attention to is the fact that there might be significant demand destruction due to the economy slowing down.

In general, I think this remains a buy on the dip market but is for an investment in not a short-term trade. I use the ETF markets to build a non-levered position, and that is how I can ride out the day-to-day volatility. Leverage will get you killed in this market if you’re not careful.

Granted, it can produce spectacular returns, but natural gas is inherently volatile due to the fact that it’s driven by weather patterns in the United States more than anything else. Short-term pullbacks will more likely than not see a little bit of support near the $2.15 level, and if we break through there, then I don’t really see much stopping us from dropping down to the $2 level, which is an area I’m willing to add to my ETF position that I will be collecting profit on in a few months.

In the meantime, it is a negative looking move, and I don’t really want to catch it here. We’ll have to wait and see how $2.13 pans out if it ends up being supported, then maybe a short-term trade is possible. Otherwise, I’m just going to wait until we get closer to that big figure and add to my longer-term position.

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