Natural gas markets absolutely collapsed during the Wednesday session as the $3 support level is nothing but a distant memory now. The supply simply outweighs any real demand out there, and as long as that is the case – and it should be for years – there will be pressure on this market.
The video yesterday said that the $3 level was now cleared, and the session on Wednesday just proved that very fact. Needless to say, in a market like this you cannot buy the commodity at all. The direction is down, and it looks like that will be the case for some time. There will always be bounces of course, but the bounces are simply selling opportunities. We now expect the $3 level to offer massive resistance. We can only sell on rallies at this point, and will do so time and time again.
Natural Gas Forecast January 12th, 2012, Technical Analysis
Originally posted here
