Natural Gas Forecast December 13, 2012, Technical Analysis

The natural gas markets fell after initially rising during the Wednesday session. The resulting candle is a shooting star at the bottom of the recent breakdown, and as a result it does look like we’re eventually going to break down through the support that we see at roughly $3.35 or so. Because of this, if we can break down below the $3.30 level, we are more than willing to not only short this market, but shorting aggressively as we head down towards the $3.00 level.

It is at the $3.00 level that we see a significant gap from back in August that has yet to be closed. It looks like that’s what we are about to try and do, so overall we have become even more bearish of this market over the last 24 hours.