Natural Weekly Price Forecast – Natural Gas Continues to Look Limp

Natural Gas Weekly Technical Analysis

The natural gas markets have rallied initially during the course of the week but have since given back those gains. I think this is a situation where the market continues to go back and forth with the $1.50 level underneath offering a bit of support and the $2 level above could be a bit of a barrier.

In other words, I think if you’re a longer term trader, you were probably just accumulating a non-levered position down at these extraordinarily low levels so that you can take advantage of the shot higher. That certainly is what I’m doing. Eventually there will be a shot higher. And it will either be due to a heat wave in the middle of summer, or it will be something along the lines of, waiting for colder temperatures later this year.

Sooner or later, we are getting, you know, an area that if drillers see prices much lower, they probably will stop drilling. And with that being the case, eventually supply gets taken out. So, I do think that there’s more risk to the upside than down. It’s just you’re going to have to be patient enough to hang on to it, and I do it through ETFs. So, I don’t have to worry about the leverage. This is probably the only way to truly hang onto this market, as it will be a matter of patience and conviction. Simply put, you cannot get aggressive in a market like this, as you could be waiting for some time for the up move to happen.

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