Natural Gas Weekly Price Forecast – Natural Gas Powers Higher

Natural Gas Weekly Technical Analysis

This past week has been very strong for the natural gas market as we find ourselves testing the $3 level at the end of the week. If we can break above there, then the market could go as high as $3.20 level. That being said, a lot of this comes down to the idea that the hurricane in the Gulf of Mexico will interrupt production and refining, which I’m sure it will, but this is a temporary thing. I took profit on Thursday from a longer-term position. I’m perfectly comfortable with that, and I recognize that the area just above is probably going to be somewhat resistive.

I would anticipate a certain amount of profit taking and that profit taking could open up the possibility of buying on the dip. I think there’s probably one more run higher heading into the winter, but I don’t necessarily want to hang on to this market as it could drop to the $2.75 level without really changing its overall attitude.

I’m going to wait for a pullback to start buying an ETF position again, because that way I can avoid the leverage and just simply take advantage of a market that’s going higher. Unfortunately, a lot of retail traders are now starting to write to me via email asking how to get involved in natural gas, which is almost a guaranteed sign that we are getting very close to the top. So, keep that in mind. Look for value. Don’t pay up for something that will go on sale

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