Natural Gas Price Forecast – Natural Gas Continues to Drop

Christopher Lewis
Published: May 30, 2024, 13:52 GMT+00:00

Natural gas continues to fall on Thursday, continuing the overall negativity that we have seen over the last couple of sessions.

In this article:

Natural Gas Technical Analysis

The natural gas markets initially tried to rally in the early hours to overtake $2.50 but has since failed. This is a continuation of the head and shoulders pattern that we had seen. The question now is will we continue to drop?

I suspect we probably do, because quite frankly, natural gas spiking the way it has this time of year. Not natural at all. I happen to live in a natural gas producing part of the United States and can assure you that if I dug about three feet underground, I’d probably hit natural gas. It’s not an asset that’s hard to come up with because of this natural gas is going to be naturally suppressed for years, but that doesn’t mean that we can’t buy it from time to time. And I, in fact, had done exactly that by purchasing an ETF called UNG in the United States. And it took the leverage out of the trade. Ultimately, I did take some profit. I’ll be looking to add to my core position, but it might be closer to the $2.15 level.

We’ll just have to wait and see. That is the measured move of the head and shoulders pattern breaking down on the four hour chart. So, I might buy a few more shares then as far as trading with a lot of leverage. You can’t do that with natural gas. It’s sure suicide with your retail account. It’s been the death of a lot of retail traders, so at this point I’m waiting for a pullback to buy. I’ll just give it time to get down to where I believe it’s a purchase.

For a look at all of today’s economic events, check out our economic calendar.

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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