Natural Gas Price Forecast – Natural Gas Pulls Back

Natural Gas Technical Analysis

The natural gas markets have fallen a bit during the trading session on Thursday as we are testing the $2.50 level. This is an area that of course is very important in general, but I think it’s not necessarily a situation where even if we break down below there, I think there are plenty of buyers underneath near the $2.40 level as well. All things being equal, this is a market that is trying to focus on the cooler temperatures coming in the autumn in the United States.

So, with that being said, this market is very likely to eventually go looking to the $3 level in general. I think natural gas also is getting a little bit of a boost due to the Chinese demand as well, as they are starting to convert a lot of larger vehicles from crude oil to natural gas. So, it all ties together for a bullish market.

This is one of those things where I play this cyclical trade every year, and then somewhere probably this year around $3 or so, I’ll just take my profit and go from there. I don’t use leverage, I use an ETF, so I have the ability to hang on to this market through the ups and downs, but you can see we’ve been in a perfect 45 degree angle uptrend since the end of August, so I think we still have plenty of buyers willing to get involved.

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