Natural Gas Forecast December 29, 2011, Technical Analysis

Natural gas markets had a bearish day on Wednesday as traders continue to go back and forth in light volume. The $3 level just below is offering significant support as one would expect out of the large handle. The market is a bit oversold, so we are very interested in selling after rallies at this point. We like looking for weakness at $3.25 and $3.50 in which to sell. In the meantime, we think the market grinds sideways as the year winds down.