Natural Gas Price Forecast – Natural Gas Continues to Find Buyers

Natural Gas Technical Analysis

The Natural gas markets rallied a bit in the early hours, but we have been all over the place. A lot of this comes down to Europeans paying through the nose. Dutch natural gas prices did rally about 13% early in the session. And while the CFD for natural gas that you are trading is a US based contract, more likely than not, it does have a little bit of an effect in the sense that once the spread gets to a certain point, it makes sense to ship natural gas, which is very expensive to do.

With that being said, it does continue to put upward pressure on the natural gas markets, despite the fact this is not a historically strong time of year. I like the idea of buying dips and I like to do it without leverage because natural gas markets are so volatile. We happen to have calmed down from a heat standpoint in the United States, so that could put downward pressure.

But really, as long as this nonsense in Europe continues with not being able to get natural gas, there’s going to be a little bit of a floor. It’s probably worth noting that the market bounced from an extraordinarily low level. We may have just seen a cyclical bottom just maybe a few weeks ago. Nonetheless, I like the idea of buying dips, but it’s an investment. And therefore, you cannot be levered to the hilt because you’re going to have to ride through some volatility. The three dollars level above is your next major ceiling.

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