Natural Weekly Price Forecast – Natural Gas Continues to See Buyers

Natural Gas Weekly Technical Analysis

The natural gas market has rallied rather significantly during the course of the week to reach the $3 level. This is a market that I think continues to see a lot of volatility, but I think we are also trying to continue the overall uptrend, mainly due to the fact that temperatures are starting to fall in the Northeastern part of the United States. And as a result, demand will pick up. This is a cyclical trade, a seasonal trade, if you will, that I get involved in every year.

I will use non-levered positions through an ETF, but you can use small CFD positions and essentially accomplish the same thing. Short-term pullbacks, I think at this point in time, will continue to be buying opportunities and the latest swing low, near the $2.68 level or so should offer pretty significant support. Remember that futures markets are now trading in the dead of winter months.

So of course, prices should continue to rise overall. That being said, we could get a week or two of warming up in the Northeast United States that could cause a short-term pullback, but at this juncture, that should be thought of as an opportunity. Again, when trading natural gas, I think the biggest trick here is to keep the leverage down because quite frankly, it literally trades on the weather, and the weather in this part of the world is very unstable at times. Uh, and because of that, the market can be quite dangerous.

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