Natural Gas Price Forecast – Natural Gas Continues to See Noise

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Natural Gas Technical Analysis

The natural gas markets have fallen initially during trading session on Friday, but it does look like we are trying to defend the $2.50 region. This is an area that, of course, is interesting and it is a large round number. So I think at this point you’ve got a situation where market participants will continue to look at this as a buy on the dip market. If we break down below the $2.50 level, then it’s possible we could drop down to $2.25, and then even as low as $2. The market remains one that is very volatile, that is the nature of natural gas.

You can see clearly there is a lot of action around $2.50. So, we’ll see if that holds. As long as that holds, the buyers have an opportunity to take advantage of the momentum. As things stand right now, a lot of what we are looking at is, a hotter than usual temperatures in the United States. And once that drops, this price will drop.

So, I have already made a certain amount of profit in my ETF position. As you know, I will look to add once we drop again. Historically speaking, this is not a very strong time of year. So, I think this is short lived. But we could get a bounce. $2.50 will determine almost everything in this market for the time being. I wouldn’t be interested in getting “too big” in this market, mainly because it is a dangerous one that can wreck a retail account.

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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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