Natural Gas Price Forecast – Natural Gas Continues to See Buying

Natural Gas Technical Analysis

Wednesday has been bullish so far in natural gas. But it is worth noting that we are a little overdone at this point, so you have to be cautious. I would be a buyer of dips not necessarily trying to get overly aggressive. The $2.50 level holding that support so far is a good sign and I think that will continue to at least give a little bit of confidence in this market. I currently hold natural gas in an ETF, and it’s not levered. So, I haven’t been overly concerned.

Granted, I did take profit in some of the position, but at this point I think you really need to see a little bit of a pullback in order to find enough value to get long. After all, I don’t know that I would be a buyer here. I wouldn’t be a seller. Don’t get me wrong, but you somewhat need to see a little bit of a pullback in order to have more room to run to the upside. $3 should be a major resistance barrier, and that’s assuming that we can get anywhere near there, which is not something that I would expect. Although, full disclosure, I didn’t think we’d get above $2.50 this early either. So, with that, I think this is a market that’s only one way, but I want to find some value before I add to the UNG position that I have at the moment.

As far as CFD trading, you can do it but you need to do it with a small position just because of the massive amount of volatility that the natural gas tends to have. Furthermore, you need to pay attention to swap, as I don’t know what your broker charges or doesn’t charge so that of course comes into the picture as well. It looks bullish. It probably stays bullish, but I want to find value.

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