Natural Price Forecast – Natural Gas Continues to Bounce Back And Forth

Natural Gas Technical Analysis

As you can see, we have pulled back as we continue to consolidate overall. This is a market that quite frankly, is more of an investment market and less of a trading market. It’s almost impossible to really get a grip on this although I would say that somewhere near the $1.50 level, there should be a significant support level and there should be a lot of buying. It is a level that over the course of years has been important and therefore I think there are traders willing to defend it.

However, real money is going to be made if you can just simply hang on to the investment perhaps through an ETF or just a small CFD position. In general, this is a market that I do think eventually will pop higher to the $2 level, but I don’t know if it’ll be a heat wave or if we just simply have to wait through summer and wait until we get towards fall when demand picks up again. That’s why I’m invested in an ETF because it’s something that just sits in my portfolio and I don’t worry about it.

If we can break above the $2 level, it would kick off a massive W pattern, and it could send this market looking towards the $2.45 level. This is a market that a lot of people will be looking at as a potential value play, but I don’t think it is likely to be one that is very interesting for some time. I am looking forward to the seasonal bounce someday, but I am not holding my breath at the moment.

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