Since the Katrina induced highs of last year, natural gas has been crushed to around $6:
Eventhough I don’t think it will be returning to its highs of last year anytime soon, there is a good chance that natural gas has found strong support here. The COT report would tend to agree with that: the small speculators have cut down on their long positons and the commercials have reduced their short positions.
As well, gas related equities have been forming bullish chart formations (the most common being double bottoms). Take a look at a Canadian natural gas trust:
Notice that the March bottom in natural gas was at a higher level than the one being carved right now, but Shiningbank is now trading higher than its March intermediate low. Among the other Canadian trusts, take a look at Esprit (EEE.un), Peyto (PEY.un), Paramount (PMT.un), Trilogy (TET.un), and Focus (FET.un). On the US side, among others, check out NGS and NGAS.
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