Looking for Opportunity in Natural Gas futures and ETF
Key points:
- Natural gas soared briefly during January 2026; since then, it has been declining steadily
- This volatile - but highly cyclical - market is presently within a favorable seasonal window; however, waiting for price confirmation might improve the odds of success
- ETF ticker UNG may offer an alternative to trading riskier Natural Gas futures
Natural Gas is a very volatile market
The daily chart below shows the price action of Natural Gas futures over the past few years. Note that this market rallied sharply in January 2026, but then the rally failed, and the price has been trending sharply lower ever since. Please note that the price is presently holding below the 70-day exponential moving average (the red line in the chart below).

The following weekly chart, stretching back to the early 1990s, reminds us that what's happened in recent months is not at all uncommon in this highly volatile market. In fact, in this chart, the January 2026 spike doesn't even seem all that remarkable.

Despite the recent price decline, there is reason to believe a reversal of fortunes is possible in the months ahead, and that now is the time for tr
