Natural Gas Price Forecast – Natural Gas Continues to Attempt a Recovery

Natural Gas Technical Analysis

The market can be a situation where you need to always watch your position size due to the inherent danger in this market. That being said, I think we get a situation where the $2.75 level is an area of potential support as well as resistance. The market bouncing from here could open up the possibility of a move to the $3 level. The $3 level is of course a large round psychologically significant figure. And I think at this point in time, you need to keep in mind that this is a market that is very sensitive to risk appetite as well as very sensitive to weather. So, both of those are really hard to get your hands around at times.

The months ahead will be very cold in the United States, but keep in mind the price is based on futures markets. So, we’re actually trading winter right now. As long as we are trading winter and potential winter demand, that does put a bit of a floor in this market. But here, before it’s all said and done, we will start to trade spring contracts.

And at that point, any bullishness will abate. As things stand right now, it does look like we’re going to try to make another run towards $3. Regardless though, I would not get overly exposed to this market at this point. Certainly not with a lot of leverage because this can be a very choppy and volatile market, and this of course could have a major impact on how the market behaves.

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