The natural gas markets had a fairly quiet session on Wednesday as the market tries to digest the massive fall that we have seen over the last week or so. When a market falls like this, there is almost always a bounce sooner or later, as people will sometimes be quick to keep those massive gains.
The supply is far too much for the demand, and this should continue. The fall might see a nice pullback, but we are selling all rallies in this market until proven otherwise. As far as buying, we wouldn't even seriously consider it until we get above $4, which is a long way away from here.
We are selling rallies, but may hold off on new lows as this fall needs to pullback in order to be healthy.
Natural Gas Forecast January 19, 2012, Technical Analysis
Natural Gas Pivot Points (Time Frame: 1 Day)
Name S1 S2 S3 Pivot R1 R2 R3