Natural gas markets rose on Tuesday as the $2.40 area continues to offer fairly strong support in this market. The commodity has been sold off in massive amounts so far in 2012, and a break seems to be what many traders have in mind.
However, the supply of natural gas is simply too great in order for traders go think this market will suddenly enter a bullish phase. True, the winter has finally come to the northeastern part of the United States, but it will prove to be too little too late as the warmer temperatures are just around the corner. We are sellers on a daily close below $2.40, and on rallies that show signs of exhaustion.
Natural Gas Forecast February 15, 2012, Technical Analysis
Natural Gas Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3