April Natural Gas Under Pressure Early as Technicals Seen Pointing to Further Declines

With supportive March cold now largely in the rearview mirror, natural gas futures continued to come under pressure in early trading Tuesday. Coming off an 11.5-cent sell-off in the previous session, the April Nymex contract was down 3.7 cents to $2.186/MMBtu at around 8:50 a.m. ET.

The April contract could have further to fall before it rolls off the board, according to ICAP Technical Analysis.

“Would not rule out a test of $2.113, $2.069-2.038, $1.967, even fresh lows (in spot continuation terms) for the April contract ahead of expiration,” ICAP analyst Brian LaRose told clients following Monday’s session. 

“However, I am still quite skeptical of the bears’ ability to push the May contract beneath the $1.967 spot low put in place back in February,” LaRose added....