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Natural Gas Price Forecast – Natural Gas Continues to See Pressure

By:
Christopher Lewis
Published: Jul 10, 2024, 14:00 GMT+00:00

The natural gas market has been negative for some time now, and at this point in time, I think you have a cyclical trade that remains negative. However, I also recognize in the right amount, this could be a position where the investor that is patient could make nice returns.

In this article:

Natural Gas Technical Analysis

The natural gas markets continue to look very soft and at this point in time, really have no recourse as to why we might go higher, at least in the short term. After all, this is a market that I think continues to focus on the fact that the hurricane didn’t wipe out production in the Gulf of Mexico. And of course, it’s the wrong time of year. The heat wave is over, and we have fallen pretty significantly from that. And now we have a situation where we are going to scrape along the bottom again.

That doesn’t mean that there isn’t something to do here. It’s just that you need to be cautious with your position sizing. After all, this is a very cyclical market. So the lower we get, the more likely I am to continue to build an ETF position because I’ll just sell it in the fall. I had a larger position at one point.

I took about a half off and now I’m still up a little bit, not overly concerned, this is something that I’m playing with no leverage, so it’s not a big deal if I’m down or percent in this position. It’s down 1% of like 3.5% of my portfolio. So again, not something to be overly concerned about. Natural gas is something that I swing trade.

I don’t want short term trade, although I’m the first to admit that a little bit of a bounce would make a certain amount of sense, but we just don’t have a catalyst. We have the CPI and the PPI numbers coming out over the next couple of days. So that could come into the picture. But really, at this point in time, I think the natural gas market is still going to suffer from the one massive problem it’s going to have, probably for years. It’s that natural gas is everywhere. It’s not rare. So, at this point in time, you know, I may add a little bit to a dip. But again, this is such a small part of my portfolio I really don’t care.

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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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