Natural Gas Price Forecast – Natural Gas Continues to See Upward Momentum

Natural Gas Technical Analysis

The natural gas markets rallied slightly in the early hours on Thursday, as we continue to see upward pressure in this market, as we have to focus now on colder temperatures in the United States. We are heading into the autumn, but at the same time, we also keep in mind that the market is based on the futures market. So therefore, they’re already trading winter contracts.

So winter, of course, brings in more demand and I think ultimately short-term pullbacks will be a buying opportunity, at least in the next couple of months. The $3 level is a situation where it’s a large round number. It’s also an area where you’ll see a lot of options trading and therefore a lot of reaction in both directions. I do think that if we get a pullback from here, it should end up being a buying opportunity, but the thing about natural gas is you have to be very cautious about your position size due to the fact that it is extraordinarily volatile, but I circumvent that by buying a position in an ETF.

If you don’t have that ability, a small contract for a different position is another way you can go. The idea is you do not want to get some type of weather related headline, just wipe out your account, which can happen easily in the natural gas market. So with all of that being said, I remain positive in the short term. I do think that we’re getting closer to the end than the beginning of the move to the upside, but it still looks like we have further to go.

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