Natural Gas Price Forecast – Natural Gas Markets Take Off Again

With a couple of tropical storms bearing and on the Gulf of Mexico, and the fact that over 40% of production is being put on hold, it makes perfect sense that the natural gas markets have rallied all the way to the crucial $2.60 level. This was an area that I anticipate in the market hitting eventually, and an area that I thought would be resistive. Quite frankly, I did not think that we would get there as quickly as we did, so again, if you are not already long of natural gas, you need to wait for some type of value proposition.

NATGAS Video 25.08.20

This is where trading gets to be difficult: You must have the ability to simply watch a market continue going higher and not participate if you are going to be successful. Quite frankly, sometimes you miss a move. However, if you get a pull back then you can pick up natural gas at a discount but paying at the very high is a great way to lose money. It is only a matter of time before we get a pull back, and if you have any leverage whatsoever, you will more than likely get hammered, suffering massive losses. Underneath, I see the $2.40 level as significant support, followed by the $2.20 level.

This market is overdone, so if you are already involved in it and deepen profit, you may wish to take some off the table and let the rest ride at a break even stop loss. Quite frankly, the market can go much higher than makes sense, so you might as well take advantage of it. If you are on the outside looking in, you must wait.

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