Natural Weekly Price Forecast – Natural Gas Continues to See Breakout

Natural Gas Weekly Technical Analysis

As I take a look at the natural gas markets on the weekly time frame, and well, we did it. We broke above the $2 level. We are showing a little bit of weakness on Friday, but overall, this has been a very strong week, and we could have much further to go. Will it happen easily? Probably not. I think we are still in the middle of a bottoming pattern.

So, I do fully anticipate a pullback that we can take advantage of, that offers value. That being said, you can’t be over levered in this market because it’s a great way to lose money. This is a very difficult market to trade in under the best of circumstances. However, we are at such low levels that it does make sense that the odds favor a move higher. This isn’t exactly the strongest time of year though, so you should keep that in the back of your mind.

A short-term pullback perhaps on the daily chart could give you a better entry, but I would keep the leverage down very low due to the fact that it can really punish you in this market. I use an ETF that is not levered, so while I am up quite a bit, I don’t really care because it’s closer to the $2.50 level than I’m more interested in exiting the position.

This time of year, is typically very difficult for natural gas as demand drops, and that’s something that’s going to be very difficult to get beyond. But there are geopolitical issues out there that could cause this market to spike. In general, I’m bullish, but I also am realistic, and I’m not looking for the moon here.

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