By FXEmpire.com
The natural gas markets continued to fall during the previous week, this time smashing through the $2.40 support level. The trend is obviously down, and it is hard to think that it is going to change anytime soon. Sure, there will be the occasional bounce, but they will just be that – a simple bounce. There is far too much supply on the market, and demand will not catch up to it anytime soon.
The $2 level will more than likely cause one of these bounces, but will turn out to be a selling opportunity yet again. The $1 level is being predicted by some analysts at this point in time, and to be honest – there is nothing in this chart that refutes that notion. The rallies are to be sold, and we prefer to use those as entries as it creates a better point to sell from. However, new lows can work as well.
Natural Gas Forecast for the Week of April 2, 2012, Technical Analysis
Originally posted here
