Natural Gas Forecast December 27, 2012, Technical Analysis

The natural gas markets rose over 1% during the Wednesday session as the up trending support line has held yet again. However, looking at this chart we can now start to make out a shape that could be construed as a bearish flag. As we have seen this market fall apart lately, this pair slacks certainly wouldn’t be much of surprise.

Also, we should keep in mind that this flag measures for a move down to the $3.00 handle. This of course would make sense as well, and as such we are still selling rallies and most certainly will sell a break of the support line of the flag.