Natural Gas Price Forecast – Natural Gas Continues to Build Support

Natural Gas Technical Analysis

As you can see, we rallied slightly during the early hours on Tuesday. But at this point in time, it is still a market that’s trying to build a bit of a base. I don’t know whether or not this is the end of the selling, but it certainly is close to the bottom. The $1.50 level is an area that you have to pay a lot of attention to. It is an area that’s been important multiple times in the past.

The market has formed a little bit of a short-term double bottom, and we’ll have to see how much further we can go. I think you have plenty of time to get involved here because this is a swing trade that’s looking to set up one that could send this market all the way to the $3 level.

In short, we have the 20 day EMA just above as offering resistance. If we can break above there, then the 50 day EMA is right at the $2 level. So I think this is a nice short term setup for those who are just looking for smash and grab trade, but I think more importantly, it’s a great swing trade setup for those who can hang on to the position, perhaps for months.

And that’s what I personally am doing. I’m doing it through an ETF. So, there’s no leverage, and the day-to-day gyration really doesn’t make a huge difference in my account, but once we start looking at maybe the last winter storm or perhaps a heat wave, that might give me an opportunity to dump some off, collect a little bit of profit, let it fall, and then in fall, prices rise again.

So, this is kind of an ongoing nuanced position that I will find myself in. I certainly wouldn’t be a seller now. There aren’t that many people left to sell, too. So, with that being said, I am invested in natural gas. I wouldn’t even say I’m bullish.

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