Natural gas fell yet again on Wednesday as the bears have stepped back into the markets. The inability of the recent pullback of drilling by Chesapeake and others to rally the markets certainly says everything you need to know: Natural gas cannot be bought in this environment, and there is little chance that will change soon.
The market is to be sold, and rallies are a great way in which to do so. A fresh low could also be a catalyst at this point in time, and as a result we will be watching for either event to happen. There is absolutely no scenario where we buy this contract.
Natural Gas Forecast February 2, 2012, Technical Analysis
Natural Gas Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3