Natural Gas Price Forecast – Natural Gas Continues to Build Bullish Case

Natural Gas Technical Analysis

You can see we initially did try to rally a bit during the trading session on Friday but gave back gains to show hesitation. That’s not a huge surprise considering how much momentum and energy has been expended to break out and above the $2 level.

So now I would anticipate a little bit of profit taking or perhaps even a little bit of a pullback makes sense. Do I think that the natural gas markets are going to go much higher at this point? Not necessarily. After all, this isn’t typically a very strong time of year for natural gas, but we will have to wait and see. Ultimately, this is a market that I think, if you get the pullback that wipes out the last couple of days, and a slight bounce, then it might be worth getting involved in.

I am involved in it, but I’m involved in it through an ETF, so I’m not levered, and I don’t really care. I’m going to hang on to this for a few months until it spikes a bit and then I’ll get rid of it. There is no more thought to it than that because we reached such a major bottom on the longer term charts.

With that being said, I do think that we are going to have a lot of noise on the way higher, but it’s very likely that we will continue to be more or less a buy on the dip, but very slowly. The $2 level of course is very important psychologically, but $1.50 underneath was even more important because that was a major swing low. And once you get below there, drillers don’t make money and that of course has a major influence.

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