Natural Gas Price Forecast – Natural Gas Continues to Grind Away

Natural Gas Technical Analysis

It looks like we are going to continue to grind back and forth in the natural gas markets as we just don’t have anywhere to be. This is a market that, if you’re a short term scalper, okay, you have a market to trade in as it’s fairly well defined with somewhere near $1.90 offering resistance, while $1.60 is offering support. As for myself, I generally look at this as a swing trading opportunity, and it gives us an opportunity to perhaps build up a longer term buy and hold position. But you can’t do it with a major amount of leverage. In fact, I use an ETF that really isn’t levered.

So, if natural gas reaches $2.50 sometime between now and the end of the year, I probably will just take profit. I will settle by doubling my money. That doesn’t mean that I have a lot of my money in it. Quite frankly, I don’t. It’s only a few percent of my trading account, but by being in the ETF, I avoid a lot of the costs, the swap fees, everything else.

So, if you are going to trade it in the CFD market, be advised that depending on your broker swap could be a very bad thing in your case. So, make sure you pay attention to that. But if you have the ability to not be levered, there’s nothing wrong with putting a small amount of your money into this and simply taking profit.

Later this year, it might be a heat spike in the United States in the middle of summer. It could just simply be winter approaching. We don’t know. I do know that once you get below $1.50, though, things get really ugly for drillers, and they simply walk away from work. So that might be a self-correcting thing in and of itself. The next couple of months, I suspect, are probably going to be very sideways though.

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