The natural gas markets had a very strong day on Friday as the support at $2.40 level continues to support the overall market. The market still remains under the $2.80 level though, and as a result we are hesitant to buy. Also, the $3 level looms fairly large above, and this is another potential trouble spot for the bulls. With this in mind, we like and prefer to trade with the overall trend, which is most decidedly down. The trend line that has been keeping this market down since November held for the day, so we also could see weakness here. With this line of thinking, we are selling rallies on the first sign of weakness at this point.
Natural Gas Forecast February 20, 2012, Technical Analysis
Natural Gas Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3