Natural Gas Forecast December 19, 2012, Technical Analysis

The natural gas markets had a very bullish session on Tuesday as we bounced and retested the $3.40 level for resistance. The real question is what we do for the session today, as it will determine whether or not the breakdown was real or fake. Because of this, we feel that the daily close today will be absolutely vital in determining the next move.

The fact that the candle closed so positively on Tuesday does give us pause as far as shorting is concerned. This is why we will wait until the end of the day today to form an opinion on the next move. All things being equal, we would love to see some type of resistant candle form for the session so that we can start selling this market again.