Natural Gas Forecast December 30, 2011, Technical Analysis

Natural gas markets fell on Thursday as the rout in this market continues. The $3 mark held though, but the volume was fairly strong, especially when you consider the time of year. With this in mind, we see the $3 level as important, but one that will eventually give way under all of this pressure. We are still selling rallies all the way to the $4 mark, and fresh lows on daily closes below $3 as well. We will not buy the natural gas futures under any circumstance at this point.