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Natural Gas Price Forecast – Natural Gas Continues to Drift Lower

By:
Christopher Lewis
Updated: Jun 21, 2024, 16:29 GMT+00:00

The natural gas markets continue to be very noisy, but overall, it looks like we are going to continue drifting lower, especially when you look at the weekly chart.

In this article:

Natural Gas Technical Analysis

Natural gas markets have risen and then fallen during the early hours of Friday as we continue to threaten a trend line on the four hour chart that I’ve been watching. Quite frankly, this is a market that I am bullish of over the longer term, but not necessarily this time of year. Yes, I recognize that there is a heat wave in the United States currently outside my door. It’s about 39 degrees Celsius. So therefore, there is going to be a lot of demand for natural gas in the short term. However, in the longer term, I certainly think that the market is going to revert to its norm and thereby the weakness of the season comes into play.

Natural gas is a highly levered market and not one that’s easy to trade for retail traders. So, you have to be very cautious. Ultimately, I think this is a situation where you are looking to buy dips, but you’re looking to buy dips with low leverage. $2.50 is an area I’m particularly interested in, but I’m also doing it through the ETF market.

So, I don’t really care what it does on a day to day basis. Because of this, I am going to continue to see this as a market that I’m more or less dollar cost averaging in, although my initial position is much lower than where we are now, and looking to cash out once we get the fall temperatures in the market’s mind because then in America natural gas markets will soar. In the short term, I just think you’re looking at dips as potential ways to dip your toes in the water.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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