The natural gas markets barely moved during the Thursday session, even as it was announced that a larger than expected drawdown had occurred for the previous week. This is probably because we are now exiting the winter season in the United States, and even during normal times, this starts the low usage season in this commodity.
If you watched the video yesterday, you know that we suspect the market is trying to form a rounded bottom in this area, but we also think that it is a minor support area. The area being built up as support isn't a reason to buy - it's a reason to wait for higher levels to sell from. Because of this, we are waiting for the expected pop in price, and will sell on signs of weakness.
Natural Gas Forecast March 16, 2012, Technical Analysis
Natural Gas Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3