The natural gas markets fell again on Wednesday as traders continue to sell this market. The Northeastern and Midwestern sections of the United States are starting to finally see cold weather, but the weather will have far too late for the bulls in this market.
However, it should be noted that the daily candle is a hammer, and this suggests that there will be a bit more fight in this area as the market decides when to move again. The $2.40 level has held up again, and this looks like a market that is going to attempt a rally. In our opinion, this will only provide a selling opportunity. We look to the $2.80 - $3 range for weakness in which to sell. A daily close sub-$2.40 would also have us selling. With this trend - there is no buying.
Natural Gas Forecast February 9, 2012, Technical Analysis
Natural Gas Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3