Natural Gas Price Forecast – Natural Gas Continues to Show Strength on Wednesday

Natural Gas Technical Analysis

The natural gas markets rallied a bit in the early hours on Wednesday as we continue to see more of a buy on the dip attitude. Ultimately, this is a market that I do think will try to make its way up to the $3 level, an area that is a large round, psychologically significant figure, and an area where we’ve seen some action previously. Underneath, we have the $2.50 level, possibly offering support as well. And with all of that being said, I think this remains more or less a buy on the dip type of scenario for the time being.

I don’t have any interest in trying to get short the natural gas market, but if we do break down below $2.50 level, then I think right around the $2.35 level, you would see a certain amount of support. In general, the market tends to have a very bullish run this time of year as traders start to price in the idea of colder temperatures in the northeastern part of the United States.

Furthermore, China is starting to convert a lot of semi-trucks and buses to natural gas from crude oil. So that gives us another reason to think that perhaps the market is likely to continue to see a lot of value hunters out there willing to take advantage of this trade, at least for the next several weeks, if not a couple of months.

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