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The natural gas markets got absolutely pummeled during the Thursday session as the announcement of a larger than expected build of natural gas reserves in the United States absolutely stopped the bullish action in its tracks. We had previously been able and willing to buy this market for the first time in ages, but after the Thursday reaction, there should be no doubt as to which direction this market wants the go. Because of this, we are willing to sell any rallies at this point in time, and look for this market to continue much lower. We see the $2.90 level as supportive, but in the end looks like it will more than likely give way.
However, as that support level is there it is very likely that we will see a little bit of a bounce. Looking at the short term charts, we will identify resistive candles that tell us it's time to sell again. We still think that this market goes back down and visit the lows at $2.30 by the time it's all said and done.