Natural Gas Forecast January 9th, 2012, Technical Analysis

Natural gas rose during the Friday session as the $3 level continues to offer support in this long-beaten down market. The large psychological numbers always tend to attract value investors, and this time will be no different. However, the supply far outweighs the demand in this market at the moment, and should continue to do so for the foreseeable future. The rallies are to be sold going forward, and a break of the $3 level on a daily close would signal another round of selling as well. We cannot imagine a situation where we buy this contract at the moment.

Natural Gas Forecast January 9th, 2012, Technical Analysis
Natural Gas Forecast January 9th, 2012, Technical Analysis

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