Natural Gas Price Forecast – Natural Gas Continues to Build Its Base

Natural Gas Technical Analysis

Natural gas markets have rallied a bit during the early hours on Monday, but at this point in time, I think you’ve got a situation where the $1.50 level underneath continues to be a major floor, while the $2 level above continues to be a major ceiling. Now, I think longer term this is a situation where investors are stepping in and buying natural gas, which is what I’ve been doing, but I’ve been doing it through an ETF. I don’t use leverage because I don’t know when we recover. This is something that you have to be very patient with and you have to use low leverage. You can’t get spooked every time the market moves a little bit. So, with that being the case, I like the idea of buying short-term dips, I’ll do something like buy another 20 shares of the UNG ETF.

That’s how I play it, but maybe you can do it with a small CFD position. Just make sure you’re paying attention to any swap you’re paying. If we can break above the $2 level, it opens up a very serious potential for a move to the $2.50 level. I have no interest in selling in this market. We are at a major bottom going back multiple years, and at this point, you have to wonder who’s left to sell to other than people building up a big, longer term position.

Remember, the most important thing is that you can be patient, as the move higher could literally be months down the road, but the potential is there for a rather big move. You need to be able to put a little bit into this market and ignore it for a while from what I can see.

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