Natural Gas Price Forecast – Natural Gas Continues to Look Heavy - FX Empire

Natural Gas Price Forecast - Natural Gas Continues to Look Heavy | FXEmpire

The natural gas markets have pulled back just a bit in the Friday session, as the markets have already priced in the upcoming heat wave in America. At this point, I will be looking for a value trade on dips.

The natural gas markets have been back and forth during the session, perhaps a little bit negative, but really at this point in time,

If we break down below there, the $2.40 level is your next support level. And anything underneath there, the bottom falls out. This is a time of year that’s not typically very bullish for natural gas. Unless of course we get a massive surge of heat because a lot of the electricity produced in the United States is via natural gas. Above we have the $3 level. And that of course is a large round, psychologically significant figure that a lot of people will be paying attention to and clearing that on a daily close, I think really could send the net gas markets much higher.

In general, I think you have a lot of volatility and therefore if you are trading in this market, I would suggest that perhaps either an ETF or a small CFD position is the way to go. Quite frankly, you can make a killing in natural gas, but you can also lose your account in the blink of an eye. Most retail traders do not have the ability to forecast weather like a large firm would, and that’s exactly what you have to do in this market.

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Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.