Natural Gas Forecast August 27, 2012, Technical Analysis

The natural gas markets fell hard on Friday, in order to retest the $2.70 level for support. The area has held yet again, but looks increasingly vulnerable to selling pressure. If this level gives way, this should open up the door to at least $2.25 or lower. In fact, we would not be surprised to see the $2.00 level tested by the end of the year. However, we need to get below the $2.70 level on a daily close in order to start shorting this obviously down trending market again. As for buying, we aren’t considering it at this point in time, and would have to see a break above the $3.30 level to give consideration to long positions.

Natural Gas Forecast August 27, 2012, Technical Analysis
Natural Gas Forecast August 27, 2012, Technical Analysis

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