The natural gas markets fell slightly during the Monday session as traders continued to pressure prices in this commodity. The fundamental picture for natural gas is extremely ugly, as there is far too much of it to command any pricing power from the suppliers. The trend is most decidedly down, and there is nothing on this chart that leads us to believe that it is going to change anytime soon.
The $2.20 level looks to be supportive at this time, and as such we think that a bounce could be coming. However, this will only be a chance to sell this market at higher prices. The gap from a couple of weekends ago should be resistive, as will the $2.60, $2.80, and $3 levels. We are selling rallies as they come, looking for signs of weakness on short time frames.
Natural Gas Forecast March 13, 2012, Technical Analysis
Natural Gas Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3