Natural Gas Forecast December 24, 2012, Technical Analysis

The natural gas markets rose during the session on Friday, but found resistance at the $3.50 level in order to fall back down and form a shooting star. The shooting star suggests to us that we will more than likely fall back down to the $3.30 level, and as a result we are willing to go short of this market on a break of the lows from the Friday session.

However, you must keep in mind that Monday will be a very illiquid market as it is Christmas Eve. The markets are working on a shortened schedule, and as a result most traders simply won’t be around. Because of this, the moves could be extremely little notice. With that in mind though, we are bearish of this market.