After hitting the low of the day at $2.73/MMBtu, The October-2012 Natural Gas futures contract rebounded as the market was due for a price correction after a 4 day 10% decline.
Weather forecasts suggest that demand for natural gas will be low during the next couple of weeks; high nuclear plant outages could boost near term demand for the commodity. Today we are seeing lower lows and lower highs, which could be an indication that the downward trend will continue. If you have a contract with open natural gas exposure during the next 6 months, you may want buy before a winter season rally. The 2012 winter strip (NOV2012-DEC2012) is trading close to its lowest level.