Natural Gas Price Forecast – Natural Gas Markets Continue to Build Rally Momentum

Natural Gas Technical Analysis

We rallied a bit during the early hours on Thursday as we continue to dance around the $2 level in the natural gas markets. We have broken out of a massive consolidation rectangle, so it does make a certain amount of sense that we are testing the waters here, if you will, as to whether or not we can go higher. If we do and break higher above the shooting star from the previous session on Wednesday, we could make a go towards the 200 day EMA above which is right around the $2.40 level. Anything above there opens up the possibility of a move to the $2.50 level. As things stand right now, I think short term pullbacks are buying opportunities, especially with the 20 day EMA now crossing above the 50 day EMA.

Natural gas has been historically cheap for a while now, and the question is whether or not they can stay down here. I don’t think they can, but this time of year is not typically bullish for natural gas. So, I do think you’ll get an opportunity to pick up natural gas on a dip. As for myself, I am invested in an ETF. I don’t have leverage applied.

It’s not a huge part of my portfolio because quite frankly, you have to keep track of the weather, and I have enough issues keeping track of the markets. So, with that being said, it’s cheap historically speaking. It should go higher, but you have to be non-levered or have a very minuscule amount of leverage to hang on to the market and eventually collect your profits, which may not truly come until the middle of summer in a heat wave or possibly even the fall.

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