Natural Gas Weekly Price Forecast – Natural Gas Continues to Drift Lower

Natural Gas Weekly Technical Analysis

Natural gas markets have fallen again during the week, and that does make a significant amount of sense due to the fact that we have the summertime, and that’s typically a slow time of year for natural gas. We had a heat wave and that sent the market back up to the $3 level, but now I think we are going to whittle away at any support and could end up closer to the $2 level. In that area, I’m more than willing to start buying more of a position. Keep in mind, I don’t use a lot of leverage. I don’t think you can in natural gas because it’s too choppy, it’s too wild.

There are far too many variables that determine the price. The natural gas market typically will get a bit of a boost towards the end of summer, maybe early fall, as people start to prepare for the idea of winter and of course the more demand that you get for natural gas. So, I’m paying very close attention to this. And when we start to bounce, I’ll add to my ETF position.

But in the meantime, I don’t think there’s a whole lot to do. I certainly don’t like the idea of shorting natural gas, although I’m pretty sure we’re going to go lower. That’s just because we are so range bound that you have to look at the typical behavior of markets in general is to rise over the long term. But right now, we’re still well defined in this range between $2 and $3.

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