Now natural gas is trading around $6.37 & as we can see on charts , this area is just below the 61.8% feb correction level of the last downside wave. As the last downside move was very ideal technical move & in respect to that current bounce should be very ideal. At the same time we witness a very strong negative divergence on , pointing for a quick downside move. 3 major gap on charts , too indicate for a reversal or profit booking.
On fundamental side, inventory still on lowest level since 2004 but upcoming reactivation of production rings & mix weather forecast may reduce the of natural gas as heating option.
Based on above studies, we will prefer to take a short position on natural gas for possible targets around $6.25 & then $5.730. A day close above $6.45 will delay the projection.
See more at: http://mantracommodity.blogspot.in/2012/07/crude.html#sthash.s2jiZt0H.dpuf