Natural Gas Price Forecast – Natural Gas Continues to Trade in a Range

Natural Gas Technical Analysis

The natural gas markets have drifted a little bit lower during the early hours on Thursday as we continue to meander around the $2.25 level or so. This is a market that of course is going to continue to be very lackluster this time of year because we just don’t have a high use scenario. The cooler temperatures later this year of course will drive the price of natural gas higher and that’s exactly what I am preparing for.

A market is going to be determined by whether or not cold temperatures are coming and the somewhat knock on effect from looking forward into the futures market. Remember, futures traders are trading a couple months out, so we’re not quite to autumn yet, but we are getting there despite the fact that it is August. Sooner or later, they start to prep for the higher demand. And once we get those cold temperatures and heat starts to crank up in the Northeast and part of the United States, you see this market spike, and therefore you collect your profit.

The catch of course is to not get over leveraged between now and then, and that’s why I use an ETF. If you don’t have the ability to use an ETF, just keep your CFD position size small enough that it doesn’t matter if it doesn’t do much for a while. After all, if we rally from here the way we have the last couple of times, we could easily double the price of natural gas, thereby making it an important part of your portfolio. But, short-term trading, that’s going to be a very difficult thing to do right now.

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