Slight rebound today after a sharp Friday selloff. The 1-5 day forecast is calling for below normal temperatures in the eastern half of the U.S., however, above normal temperatures are expected over the next 7-10 days. Longer term winter forecasts are less reliable as unprecedented conditions are making it impossible to use historical trends. With that said, NOAA is projecting above normal temperatures in the western half of the U.S., and equal chances on the eastern half.
The December 2012 contract rebounded at $3.50/MMBtu support, and the 50 day moving average is currently at $3.52/MMBtu. Therefore we expect to see further buying interest at this level if we test the low of the day again.
