Natural Gas Forecast October 17, 2014, Technical Analysis

The natural gas markets fell slightly during the course of the day here on Thursday, breaking well below the $3.80 level. Because that area has been broken to the downside, we think that this market will continue to offer selling opportunities as it heads down to the $3.50 level. With that, we look at short-term charts in order to start selling for short-term moves lower. Ultimately, the $3.50 level should be somewhat supportive, as it is a large, round, psychologically significant number. We have no interest in buying this market as natural gas is most certainly bearish.