Natural Gas Price Forecast – Natural Gas Continues to Look Lost

Natural Gas Technical Analysis

Natural gas markets have been all over the place during the early hours on Tuesday, which I think is going to continue to be the case due to the fact that natural gas supplies in Europe are plunging again and it turns out that despite all of the ideas of solar power, wind power, et cetera, they still need natural gas in Europe. Furthermore, the Russian supply of course is not available. So you have things like yesterday when Dutch natural gas prices jumped 13% before the Americans even woke up.

So with that being the case, there is a knock-on effect over here in the US natural gas markets, which is what you’re trading, and therefore I do think that there’s more of a proclivity to go higher. That being said, I do like the idea of buying dips, and I am still long of natural gas via ETF positions, but I don’t have a lot of leverage on. You just can’t be levered in natural gas for very long. It can cause chaos to your account. It looks like we are trying to hang on to the $2.50 level here in the US.

But if we break down below there, then the $2.35 level is your next support level, followed by $2.20. As we fall, I buy more ETF, because I don’t have to worry about being over levered. I do think eventually we’ll try to get to $3, but it’s going to be a very noisy ride, because quite frankly, this is a very poor time of year for natural gas under most circumstances. So with that, we have a lot of push-pull going here. Quite frankly, unless you’re experienced trading, you should stay out of this market.

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