Natural gas markets were positive for the week, gaining from the recent floor we have seen at the $2.40 level. The market is very weak over the longer-term, and the trend certainly hasn't been changed by anything that has happen over the last week. However, there is a significant amount of support in this area, and as such we see it as a nice consolidation area.
Selling this market is the only position that a prudent trade can take at this point. The $3 level in our opinion is strong resistance waiting to happen. Because of this, we are willing to sell the market as we approach that area. The $2.80 level is also resistive, so for those that choose to be a bit more aggressive, you can use that as a guide. Buying isn't even a thought at the moment.
Natural Gas Forecast for the Week of February 20, 2012, Technical Analysis
Natural Gas Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3