Natural Gas Price Forecast – Natural Gas Continues to Churn

Natural Gas Technical Analysis

As you can see, we continue to go back and forth and now it looks like we are just hanging around trying to sort out where we are going next. With that being the case, you have to look at this through the prism of an accumulation phase.

This is a market that I think will continue to see a lot of noise. I do think there’s a lot of support down here at the $1.50 level. So as long as that continues to be the case, I really don’t like shorting all the way down here. I mean, quite frankly, you’ve missed that trade. There is no point in trying to sell a market that has collapsed the way natural gas has over the last several months. At this point in time, it’s all about taking advantage of the big move that will happen eventually to the upside.

So now you look at the longer term chart, you see just how low we are at a major floor in the market. And I think that ends up being the story here. Now I’m doing it through the ETF, UNG, because I don’t want to pay massive amounts of currency every time the market pulls back. That being said, I also think that we could get to the $3 level again, but that might take the better part of the rest of this year, so it’s more of an investment. If you’re using CFDs, just use a small position, but I think right now you’re probably just going to continue to bang around between $1,50 and $2, so I’m using the area just above $1,50 as an accumulation place for an investment. It’s a swing trade, and it’s a swing trade that could take several months because I don’t think we break out of this range anytime soon.

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