Natural gas futures in the April contract are higher by 6 points at 2.66 as now I am recommending a bullish position at this level as I think there's a probability that prices have finally bottomed out after dropping about 40 points over the last 3 weeks.

If you take this trade you must understand that this is a counter-trend trade which I don't recommend very often, but I do think that prices are limited to the downside so I will take a shot as I think the risk/reward are in your favor. Depending on your risk tolerance you can place the stop loss at the 10 day low standing at 2.56 risking around $500 on 2 mini contracts or what I will be recommending is to place the stop loss under the contract low which was touched on December 21st at 2.48 risking $1,000 plus slippage and commission.

The winter months are basically behind us as that's when huge volatility & price spikes can occur as we are nearly 70° in the Chicagoland area today with heavy rains, but that doesn't necessarily mean that natural gas prices will continue to move lower as I think that's already been reflected into the price so take a shot at the upside in my opinion.

Natural gas prices are still trading under their 20 and 100-day moving average as the trend is lower, but like I said this is a counter-trend trade which can be very dangerous over the long haul as trading with the trend in my opinion is the best way to go, but sometimes special opportunities arise and I think that's the case in natural gas at the present time.

TREND: LOWER

CHART STRUCTURE: EXCELLENT

VOLATILITY---INCREASING