Natural Gas Price Forecast – Natural Gas Continues to Bounce at Bottom

Natural Gas Technical Analysis

The natural gas markets have seen quite a bit of noisy behavior during the last couple of weeks. But quite frankly, we are just hanging around and trying to figure out where to go next. Ultimately, this is a market that I think given enough time, we will see a pretty big move, but this is not the time of year for that to happen. In general, if we were to break higher, the $2 level would be a major resistance barrier. Underneath, we have a significant amount of support at the $1.50 level, which of course is an area that if you look at the long-term charts is a major lower in the market. And I don’t know if it will change anytime soon.

That being said, keep in mind that drillers are now worried about making money and they will step away from the fields they’ve done it before. And eventually that will drive prices up. If you are an investor, and in this case, I am an investor, I’m not trading with any leverage, you can buy an ETF and just sit on this for a few months until it bumps higher. If you want to trade short term, first of all, I would say good luck, but you have to look at each rally as a short-term selling opportunity on a short-term chart. This is a market that you cannot be positive on, without giving it several months leeway to move in your direction.

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