Natural Gas Price Forecast – Natural Gas Continues to Range Trade

Natural Gas Technical Analysis

The natural gas market has rallied a little bit during the trading session here on Thursday, but really at this point, we just continue to go back and forth and look for some type of reason to get long because you can’t really short this market unless of course you are short-term trading. The market is almost certainly going to be a scenario where the traders will be going very tightly back and forth and this is a very quiet time of year.

Now, having said that, I think this is a scenario where you have to be very cautious with your position sizing because quite frankly, you don’t want to get over levered. But with that, we also can make an argument that the market breaking above the $2 level could bring in a rush of new money. That probably happens with some type of heat wave in the middle of summer, or we may even have to wait until fall. I am currently invested in an ETF that follows natural gas in the United States, it’s UNG. There are other ones out there that isn’t levered.

So, I don’t really care about the day-to-day motion. I don’t want to get bogged down on 15-minute charts because quite frankly, that’s where you would have to trade this. Eventually, demand picks up because if for no other reason, drillers just won’t be bothered. So, with that being said, I think it’s a good investment. Is it a trade? Probably not, at least not unless you have the ability to trade back and forth between like $1.90 and $1.60 below.

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