Natural Gas Price Forecast – Natural Gas Continues to Build a Base?

Natural Gas Technical Analysis

Take a look at the natural gas markets and you can see that we have rallied a little bit during the trading session here on Monday, as we could be forming a little bit of a double bottom. That being said, what you need to look at this market through the prism of, are we finding a longer term swing bottom? After all, take a look at the longer term charts and you’ll recognize that $1.50 is a major support level.

The market is to the point where basically drillers are losing money by extracting natural gas out of the earth. Now it’s going to take some time to work through the massive oversupply, especially considering that this is the time of year when demand starts to drop a bit. However, if you’re a longer term swing trader and investor, this is as cheap as it gets really if you’re willing to hang on to it for a while.

Sometime later this year, there will be a spike. Either it’ll be a heat wave or will be the next winter storm between now and spring, or it might even be next fall. But this is an investment that if you can take the leverage out of the equation, you’ll make money. And in fact, I fully anticipate the price to double sometime between now and the end of the year. The question of course is when, and we don’t know. So this isn’t so much a timing issue, it’s a patience issue. Can you keep your leverage low enough via CFDs or an ETF to wait for your profits to appear.

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