Despite a strong showing last Friday and gains seen in nearbyphysical market prices, natural gas futures moved lower after theopening bell yesterday and were never able to recover. The Maycontract was the hardest hit, dropping 5.6 cents to settle at$2.889. By comparison, the 12-month strip sank 3.2 cents to closeat $2.96. Estimated volume was modest, with 48,743 contractschanging hands.

Traders said yesterday’s flat open, followed by early selling,set a bearish technical tone for the day. Once the market startedlower, profit-taking added to the losses. However, technicalfactors were not alone. Many market watchers were looking forsupportive weather news to help boost prices above the $3.00 level.When those weather reports did not materialize, the market went theother direction.

According to the National Weather Service, roughly two-thirds ofthe country is expected to see above-normal temperatures next byweek’s end. Normal temperatures are forecast across a narrow bandfrom New England, across the Great Lakes, Northern Plains to thePacific Northwest. Additionally, most of California, New Mexico andparts of Arizona will likely see normal readings, the NWS said.

Now that the May contract has broken back into the $2.70-90trading range that bounded prices nearly all of March, support isseen at $2.84. Resistance is seen previous highs of $2.94 and$3.005.

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