Natural Gas Price Forecast – Natural Gas Continues to Sit at Support

Natural Gas Technical Analysis

Natural gas markets continue to hang around extreme lows  and at this point in time I think it is very likely that we will continue to see a lot of noise. All things being equal, this is a market that I think if you continue to look at it through the prism of value, it is most certainly a market that you can be an investor in.

I don’t think it’s very likely that we can go much lower, maybe $1.50 I think, but that is a huge floor in the market from a longer-term trading perspective. And of course, at this point in time, you have to wonder who’s left to sell. I mean, quite frankly, drilling companies are about to step away from the fields because they’re not making any money.

That being said, it doesn’t necessarily mean that it’s going to be a quick recovery. It doesn’t mean that we’re going to have much of a chance of a quick smash and grab trade, but I am invested in an ETF, and then that way I can take advantage of what will certainly be a significant bounce given enough time, but I also recognize that I may be sitting on this position for a couple of months.

If we do break higher, the $2 level, of course, is the first major area, but if we break that, we will have completely confirmed a double bottom and we could go much higher. Now, I don’t know when that will happen. It could be the end of summer for that matter, so leverage is something that you just cannot have in this position.

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