Natural Gas Price Forecast – Natural Gas Continues to Trade in a Range

Natural Gas Technical Analysis

We’ve been in a consolidation phase for some time in the natural gas markets and judging by the early action on Tuesday, we are going to stay there. The market could very well pull back from here, but I don’t necessarily think that it is going to collapse.

I just think we are going back and forth in order to build up some type of basing pattern. All things being equal, this is a market that I think will continue to pay attention to the $2 level above as a major resistance, and the $1.50 level underneath is a major flaw. In general, a pullback offers value to start buying natural gas.

But that being said, you can’t expect much. This is a rangebound trading market. However, if you’re a swing trader and I do tend to be more of a swing trader, you can take on small positions. Just don’t put a bunch of leverage on. Natural gas will rally either due to the spike in temperatures in the summer or it will rally when we head into winter.

Simply put, this is a market that I have an ETF position in and just check it every once in a while, and once we get profit, sizable profit, which I think will be closer to $2.50, I’ll just take my profit and move along the way. This is a market that is getting dangerously close to a point where drillers will lose money. So, we are pretty close to the bottom. Now we just need a catalyst and that may not happen for months.

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