Dec Natural Gas: Natural Gas prices closed nearly unchanged on Thursday as trade becomes mixed against the lower end of the rollover Gap at 3600. The trend is down, therefore the Bears will maintain a slight edge setting a Mixed to Lower Bias. Still, only trade below 3600 sustains the downtrend. The Bulls will likely be defending the Gap fill point at 3600, and if successful, could launch a solid short covering reversal into the weekend.

Heading into Friday's pit session we are going to look to trade the Gap, going Long against 3612-3600 S1 Support, Stops below 3585 suggested. Scalpers objective is 3649-3655 R1 Pivot/Settlement Resistance, then 3690-3708 R2 Resistance. Trade above 3708 confirms a near term bottom, shifting the bias to the Bulls and gunning for upper targets at 3730 R3 to 3763-3785 R4.

On the downside, a struggle to push above 3649-3655 R1 Resistance will continue to threaten lower price action. That said, a short can be taken against R1, Stops above 3665 suggested. Scalpers will cover against 3612-3600 S1 Support. Trade taking out 3600 will renew weakness and push the market to 3550 S2 Support down to 3500 S2. Extended Bear drives will aim for the 2011 lows at 3455-3446 S4 lower Support target.

Daily Chart:

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