Natural Gas Weekly Price Forecast – Natural Gas Continues to Attempt to Rally

Natural Gas Weekly Technical Analysis

The natural gas markets have been rather strong during the course of the overall trading week, but Friday we are giving back some of those gains. I suspect this probably has a lot to do with the fact that we are in a cyclically weak time of year, but furthermore, we also have a situation where traders are probably not wanting to hang on to a position into the weekend. So, with that being said, I think we are still looking very much like a market that’s going to try to consolidate between $2 and perhaps $2.30.

Ultimately, I do think we will go higher later, but in the short term, the prognosis for natural gas was bullish due to the fact that the South has seen extreme heat. But I also think that it is probably only a matter of time before the traders out there start to focus on autumn and that will push prices higher. Because of this, I have been buying an ETF position and therefore taking advantage of a low leverage position, which I guess now has probably made some money.

But really, I look to sell it on a rip higher once we start talking about colder weather in the Northeast Empire of the United States. We will get the occasional heat wave. And if that happens, that can lift prices. We’ve seen that happen earlier this year. But ultimately, this is a scenario where I think this is probably a story for a couple of months down the road. So, if you have a small CFD position or an ETF position like I do, you have the ability to take advantage of that spike without much stress.

For a look at all of today’s economic events, check out our economic calendar.