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The natural gas markets fell rather hard during the Monday session giving up 3% of their value as they fell down to the $3.48 level. We still see this market is rather bullish, and this is simply a return to the support zone that extends from $3.40 the $3.50 level. In other words, we see this is a simple "retesting of former resistance as support.”
In general, commodities had a rough Monday so this may have been more or less a "risk on, risk off" type of trade anyways. We certainly aren't concerned about natural gas and its bullish tendencies at the moment, and see support at the $3.40, $3.20, and $3.00 levels. Because of this, we are buying supportive action, and fully expect to see some in the next day or two.