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

Natural Gas Technical Analysis

Natural gas markets are threatening a small breakout at the $2.40 level, as it looks like it could go to the $2.50 level. Quite frankly, this is a market that is very noisy and maybe capitalizing a bit on the weakness of crude oil. Nonetheless, the $2.50 level is a major barrier that we need to break through. If we can break above there, then the market could go looking to the $3 level.

All things being equal, this is a market that short-term pullbacks are probably continued to be bought into with the $2.20 level now offering your floor. Keep in mind that the market participants out there continue to look at this through the prism of the impending fall and winter seasons, which is really what will drive this pair.

I’ve been saying for some time now that I am involved in ETF positions because I don’t have to worry about the massive amount of leverage that you can find yourself in if you’re doing futures contracts. If you’re a CFD trader, then small positions collecting your profit later this year, that’s the route to go. Quite frankly, it’s almost like a set it and forget it trade this time of year, because sooner or later we do get that explosive move to the upside when the first cold weather and winter or late fall shows up.

And that’s generally what I do. I just take my profit then and forget about natural gas for the rest of the year. It’s a small gain I make every year of a couple of percent. It’s not a huge part of my portfolio, nor would I suggest that it should be of yours.

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