Natural Price Forecast – Natural Gas Continues to Recover

Natural Gas Technical Analysis

Natural gas markets have had a strong session on Tuesday in the early hours as it looks like we are doing everything we can to build a bit of a base. We’ve recently done a little bit of a double bottom, but at this point in time, I think we still have a long way to go before natural gas truly takes off, but this is a good investment. And what I mean by that, is it is a market that I think you can hang on to for a while with low or no leverage, and you will get paid given enough time. Ultimately, natural gas is a difficult market to trade in at times, mainly due to the fact that it focuses more or less on US demand, and therefore you have to understand weather patterns.

That being said, there are geopolitical concerns in the Middle East and that could come into the market as well. We also are at historically cheap levels and have to look at the idea that perhaps drillers will have to walk away from the fields due to the fact that they aren’t getting paid, could be a major driver as well. Now, having said that, we have a lot of work to do to really get moving to the upside, and it might not be until this fall.

So, because of this, I’m involved in an ETF and that is a way to play this with no leverage. I’ve got a certain amount of money in it and given enough time, I expect to collect profit. Once we get to the $2 level, then we’ll start to pay close attention to whether or not we can move to break even. I would not be a highly levered trader in this market at the moment, just simply because it could be dead money for a while, but nonetheless, it does look like we are trying to turn things around.

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