The natural gas markets fell again for the Thursday session to hover around the $2.40 level. The action lately has been bearish, but the market certainly needed to rest, and it looks as if the market could bounce at this point. None the less, the trend is still down, and a break of the $2.40 level on the daily close would be a sell signal as this commodity is far too abundant to think it will continue to rise for any real length of time.
Rallies will also be sold too, as soon as there is a sign of weakness on the shorter time frames. The $2.80 – $3 area is our “line in the sand” and it takes a move above that level would have us rethinking our bearish stance. However, at this point selling seems to be the right move.