Natural Gas Price Forecast – Natural Gas Continues to Consolidate at Lows

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Natural Gas Technical Analysis

Natural gas has gone back and forth during the Friday session as we continue to stabilize. That being said, I think this is a market that, given enough time, will probably balance just if for no other reason than the fact that we are at extreme lows.

The $1.50 level underneath continues to be a bit of a floor in the market. And as long as we stay above, there, I don’t have any interest in trying to bail out of my position. I currently have an ETF position in this market and therefore there’s no leverage, so I’m not overly concerned. I can hang on to this for an extraordinarily long amount of time.

And that might actually be what has to happen. After all, natural gas cyclicality dictates that it’s normally pretty quiet this time of year anyway. And of course, we have a massive amount of supply that won’t last forever because quite frankly, drillers are not making that much money. But, once we get to the cooler part of the year, or perhaps with the heat wave in the summer, we will see a spike in natural gas prices, and I will collect my profit.

That being said, I can hang on to this position for a long time because I don’t have a leveraged futures position or a huge CFD position, both of which I would definitely stay away from right now. Natural gas will recover, and when it does, I’ll be there. However, being patient is going to be a big part of the game plan.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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