Natural Gas Price Forecast – Natural Gas Markets Get Crushed

Natural Gas Price Forecast Video for 06.09.23

Natural Gas Technical Analysis

Natural gas markets have been hit somewhat hard during the trading session on Tuesday, as it looks like we are going to continue with more of the same brutal consolidation and choppiness that has been such a major part of this market. With that being the case, I am a bit hesitant to put money to work in any great amounts, and therefore I have been very cautious about my position sizing. In fact, I’m not even using leverage at the moment, but full disclosure: I am long of this market. I’m using the ETF market, because it allows me exposure to natural gas without getting crushed by leverage which of course would be an absolutely horrible thing in this environment.

Eventually, the markets will have to price in the winter, and therefore this is more or less an investment. I certainly don’t see an argument for shorting natural gas at this point, because quite frankly we are at such a low level. In fact, if we fell hard enough I might be triggered into buying more.

The $3.00 level needs to be overcome in order to truly break out, and when that happens I only anticipate that we will go looking to the 200-Day EMA, and then eventually the $5.00 level. After all, with winter coming, there will be more demand and of course the Europeans are inking more deals to buy liquefied natural gas from America than ever before. Because of this, you will have to look at this through the prism of an investment but eventually, you’re up past the heat homes. That natural gas is not coming from Russia, nor is it coming from Africa. That leaves America, and that’s exactly what this contract is based upon, natural gas in the United States.

It’s a matter of being patient and waiting for the next opportunity, and therefore nothing has changed on my end, although being patient with a trade that is taking this long certainly is an exercise that even Buddha might find a taxing at this point. Nonetheless, by the end of the year this should double for more we are now and will pay off handsomely.

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