Natural Gas Price Forecast – Natural Gas Continues to See Sideways Action

Natural Gas Technical Analysis

Natural gas CFD markets and the futures markets were closed on Friday. That being said, the 1.50 cents level underneath offers a significant amount of support. And I think at this point, if we stay above there, it’s probably only a matter of time before we go higher. All things being equal, this is a market that I think is more of an investment than any type of short-term trade. Yes, you could probably trade it back and forth at this point, but you’re going to have to be very cautious. And I certainly would be very cautious with leverage due to the fact that this is dead money. However, drillers are starting to walk away from fields and sooner or later, that’s going to cause a problem.

There is a cyclicality to this market, so don’t be surprised if we do very little for the next six months. That being said, though, if you’re an investor you can pile into ETFs gradually and wait for the fall bump to come. Right now, the supply is just too strong to work off and therefore any short-term gains you probably have to take if you’re already buying. I certainly wouldn’t be short at this point because quite frankly, you have to wonder who’s left to sell natural gas. So, with that being said, if you’re patient, it could be a nice longer-term investment. That being said, make sure you are patient because you will need to understand that the market will move at its own pace. Ultimately, this is a situation where buyers will get paid – eventually.

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