Natural gas futures continued lower in early trading Monday as analysts highlighted bearish technical momentum. Coming off a 56.0-cent sell-off to close out last week’s trading, the October Nymex contract was down another 28.8 cents to $7.476/MMBtu as of around 8:55 a.m. ET.

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Friday’s sell-off saw the front month drop below key technical support at $7.75-7.88, setting the stage for potential further declines near term, according to EBW Analytics Group senior analyst Eli Rubin.

“Last week’s price action sets up a bearish technical backdrop for natural gas,” Rubin said. “After initially bouncing off technical support near the 50-day and 100-day moving averages — and pushing above the 20-day moving average on Wednesday — the collapse into the weekend sets up further...