Natural Gas Price Forecast – Natural Gas Continues to See Upward Pressures

Natural Gas Technical Analysis

Natural gas markets rallied in the early hours of Thursday, testing the top of the Bollinger Band indicator on the four hour chart. It certainly looks like we are trying to do everything we can to take off to the upside. And I’m pretty sure this has to do with Europe and almost nothing to do with the United States. Remember, you are trading a U.S. contract when you trade natural gas markets most of the time to check with your broker. But that’s why it’s $2.67 at the moment and not priced in euros.

The Dutch of course are big suppliers to natural gas in the European Union. And I do know that recently we’ve had massive moves. So, with that being said, the market is likely to continue to see buyers on dips. This is an uptrend that we have been paying close attention to. I think the $2.80 level is an area that a lot of people would be looking at as a short-term ceiling.

The $3 level above is of course even more resistive. This is a knock-on effect from what’s going on in Europe and not so much here in America. I don’t use leverage in natural gas because it’s far too volatile and I use an ETF. If you don’t have that ability, then make sure that your contract size in your CFD position is reasonable because natural gas can be extraordinarily violent in its moves. In the short term, I think the $2.50 level offers a bit of support.

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