Natural Gas Forecast: Pulls Back After Surge

As things stand at the moment, the temperatures in the US are cooling, but aren’t cool enough to change to overall attitude of markets at the moment.The cyclical trade is coming into the picture and therefore I have been buying an ETF position and little bits and pieces in order to take advantage of the cyclical trade when the Northeastern part of the United States, starts to use more, natural gas to heat homes. So, with that being the case, I think you have a situation where the 50 day EMA underneath offer in support. In general, this is a market that I think will continue to be a buy on the dip scenario, but you need to do so with a very, very small position because of the massive amount of volatility that natural gas has under the best of circumstances. And right now, we don’t have the best of circumstances. Size and Speed MatterI do think that if you’re very slow and methodical in building up a position, you can do what I do and just wait for it to spike once we get word of cold weather in the United States, take your profit and move on. I have no interest in shorting this market, but then again, I don’t have any interest in trying to trade this market. It’s an investment. Natural gas is almost impossible to trade cleanly because it is also weather-based and of course, with transmission line storage and so many other variables. More By This Author:GBP/USD Forecast: British Pound Recovers Against Greenback On MondayCAD/JPY Forex Signal: Yen Weakens Amid RecoveryPairs In Focus – Sunday, Sept. 1