Natural Gas Price Forecast – Natural Gas Continues to Consolidate at Low Levels

Natural Gas Technical Analysis

Natural gas markets have done very little during the trading session on Thursday, and as we continue to wait for some type of catalyst to go higher, the market continues to look at the $1.50 level underneath as a major support barrier. Also, it looks at the $2 level above a major resistance barrier that will be difficult to break above, and will take a certain amount of time and effort to make happen.

Natural gas this time of year typically doesn’t do much, and that’s exactly what you’re seeing. This is why I’m involved in the ETF in the United States called UNG, but there are other ETFs out there. It has no leverage, so I don’t really care what happens for a while because the market will eventually pop. And when it does, I’ll collect my profit.

As far as short term trading is concerned, you can only go for micro moves on a sideways type of market. That’s fine if you have the ability to babysit the charts all day. In general, as we go lower, I am more likely to buy from the market. If I were to do so and add to my ETF position. But if I were a sideways short term trader, I’d be looking to buy on dips, sell on rips. It’s really that straightforward. The market is likely to continue to see a lot of malaise, but eventually we’ll get some type of heat wave or just simple winter later this year, and that will drive prices higher.

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