Natural Gas Weekly Price Forecast – Natural Gas Continues to Look For The Floor

Natural Gas Weekly Technical Analysis

The natural gas markets have had a very volatile week as we continue to dance around the two dollars level. This is a market that had seen a massive shot higher, mainly due to the heat wave in the United States that has now come and gone. Ultimately, I look at this through the prism of an investment, and therefore, in this general vicinity, I am interested in perhaps building up a position. That being said, you cannot do so with a bunch of leverage because natural gas is cyclically very bearish this time of year. However, sooner or later, traders will start to focus on winter.

And when they do, those falling temperatures will drive the price of natural gas higher. Remember, when you are trading a CFD contract, you are trading an amalgamation of various futures contracts most of the time. So even though it is now the month of August, you might be trading a futures contract or an average price between two futures contracts of colder months much sooner than you would anticipate. So that’s why I split the difference basically every year and just start buying an ETF in this general vicinity after a massive pullback. Previously, I did have a position on as I had been telling you, but I also took half off as the heat wave really took off and then got stopped out for break even for the rest.

That is one of those things where it adds a little bit to my account. But the real move has yet to be seen. That is a middle of autumn type of move. Typically, when it starts, you don’t really know. It comes down to weather more than anything else. But nonetheless, it is an opportunity that I take advantage of every couple of seasons, either up or down. And I just play the cycle. It’s normally good for a couple of percent in one direction or the other with a low levered position. Having said that, if you are going to follow me on this journey, it is something that takes a lot of patience.

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