June Natural Gas: Natural gas plunged on Thursday, losing 31.6 cents to close at 4261 with accelerated selling coming in from the larger-than-expected build in storage. Technically, the market has already been rolling over from the small body candles seen on Mon-Tues and failed to hold the 4400-4390 Support level. Today's bias is Flat to Bearish as we expect consolidation and moderate short covering which will offer shorting opportunities on rallies.

Heading into the open, the market may open above our initial R1 Resistance at 4250-4261, however, if it does not, look for early defensive trade against the 4205-4175 S1 Support range. If we do open above 4261, wait to short rallies against R2 and R3 Resistance zones with 2.0 cent Stops suggested above the high of each range. Look for drives back towards 4261 to 4175. The downside break of 4175 clears the way for continuation drives to 4130 S2 to 4100 S3 and potentially to 4050-3990 S4 on a flush.

On the upside, the open above 4261 offer very minor scalping opportunities against 4261-4250 with a Stop below 4235 suggested. Otherwise, traders can play a test and hold of 4205-4175 S1 Support, Stopping out below 4160. If rallies develop, Longs should have working orders to scale out at R2 to R3. A punch through 4400 sets off extended rallies into the 4450-4500 R4 range.

Daily Chart:

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