Natural Gas Price Forecast – Natural Gas Continues to Look Noisy

Natural Gas Technical Analysis

The natural gas markets gapped lower to kick off the week, but then just kind of bounced around in the same general area since then as I think the market is trying to sort itself out right now. Natural gas has been extraordinarily bullish for some time, but quite frankly, this is not the time of year that typically benefits natural gas. Yes, there’s a bit of a heat wave in the United States, but it’s not going to last forever, and in fact, should be done by the upcoming weekend or somewhere around there.

So, with that being the case, the question then is how long can we withstand this upward pressure in a market that quite frankly is saturated with supply from a longer term perspective. I think at this point we are more likely than not to see some type of pullback, but I don’t necessarily want to sell natural gas because it’s at a historically low area or at least it was until recently. Because of this I’ll be looking for a pullback and then I’ll be buying natural gas via ETF positions.

If you don’t have that ability, perhaps a small CFD position might work out. But either way, I think this is a market that you’re looking to buy on the dips, but very slowly understanding that it’s very possible that this is a market that may take some time to really start to take off. This might be a fall situation.

Sometime later this year, when we approach fall, you get colder temperatures, demand spikes as we prepare for winter. At this point in time, I’m very comfortable in my position. I don’t have it as a very big part of my portfolio. The $3 level above seems to loom large. I think that probably remains the case.

For a look at all of today’s economic events, check out our economic calendar.