Is Natural Gas Experiencing a Capitulation Low?

Nearby Natural Gas has been in what looks like a free-fall capitulation for the last four sessions, and, in fact, has plunged to test its April 2012 low at 1.90 in overnight action prior to recovering to 2.07 in pre-market action.

With the Nov contract expiring tomorrow afternoon, but considering the near $0.30 premium of the soon-to-be front-month December contract, it is very risky to enter long positions in Natural Gas at this time.

Although the huge short position in Natural Gas is ripe for some serious short-covering pain, it might just be prudent to wait for the December rollover tomorrow-- into its first day or second day of trading-- prior to considering a low-picking expedition in Natural Gas.

Perhaps 1.95-1.90 will be tested again, and again, in the upcoming days prior to a really explosive short-covering rally?