Natural Gas Weekly Price Forecast – Natural Gas Continues to Consolidate Longer Term

Christopher Lewis
Published: May 3, 2024, 16:11 GMT+00:00

Natural gas continue to see a lot of back and forth action, as it looks like we are trying to build some kind of base at this point. At this point, its cheap, but you have to be very patient.

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Natural Gas Weekly Technical Analysis

All things being equal, this is a market that I think is going to continue to go sideways. But this past week has been rather positive. It doesn’t really matter though. We could see things turn right back around. Quite frankly, this is a market that has an oversupplied dynamic too. And so that being said, I think you’ve got a situation where the market probably has a lot of work to do to go higher.

However, there are a lot of things that can come into the picture and push that gas higher. For example, geopolitical concerns. There’s plenty of those also, you can have a heat wave, or you can have cold temperatures later this year. And that’s essentially how I’m playing this with the fact that it is so historically cheap that buying an ETF position makes a lot of sense, because you’re only tying up what you put into it.

There’s no leverage. You can get in, you can get out. I’m just sitting on a position. I’m probably up a little bit for the week. I don’t care at this point in time. Once we break $2, I’ll pay attention. Maybe aim for $2,50 and close out of my ETF, which isn’t priced at $2.50, but it does follow it. So that’s the way I’m playing this. I think this is a longer term swing trade. I don’t think that we necessarily get towards $10, but I think 250 or $3 is very reasonable sometime this year.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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