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Natural Gas Price Forecast – Natural Gas Continues to See Overhead Pressure

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Natural Gas Technical Analysis

The natural gas markets have shown themselves to be somewhat hesitant on Thursday, as the $2 level continues to be a major resistance level. The $2 level, of course, has a lot of psychology attached to it so it’s very likely that we will continue to see that area as an area that will be important.

With that being said, the market will continue to see a lot of noisy behavior around here, and of course, we are in the midst of trying to sort out whether or not we can continue to go higher. If we can break above the two $2 level, then I think there’s a real shot that perhaps the natural gas market may recover for a while.

If it does, then we’ve got a shot at going to $2.50. That being said, you do have to be cognizant of the fact that perhaps we have to pay close attention to the fact that this is the wrong time of year and see a massive shot higher unless, of course, we either get a surprise winter storm late, or we get some type of a scenario where there is a massive heat wave later in the year, which could also affect the market.

So, with that being said, I do think that a lot of longer term traders will be looking at this as an opportunity to pick up value. But I think you have to be very cautious and recognize the fact that you need to do so with low leverage. Longer term, I do think that we will return to more historical norms, but we just don’t seem to be ready to do so yet. Because of this, I am very patient, and I will pick up ETF positions on dips, recognizing the $1.50 level as a potential floor in the market.

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

This article was originally posted on FX Empire

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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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