With little or no air-conditioning related demand on the horizon and amid a quickly eroding year-on-year storage deficit, natural gas futures slumped to new 9-month lows Monday as traders pressed the market’s downside yet again. After opening lower, the June contract was hit with a steady procession of commercial and speculative selling that took the market down to a previous low at $4.10 just before the closing bell. Unable to rebound, June closed just off that level at $4.113, down 17.3 cents for the day.

According to the latest six- to 10-day forecast released by the National Weather Service, below normal temperatures are expected to continue across the entire eastern half of the U.S. through this weekend, limiting the potential gas demand for electric generation. However, if there is a silver lining to the weather forecast, it is the forecast for the West, which calls for above-normal temperature readings to make their way from west to east over the next 11 to 15 days.

Looking ahead, if prices have a chance to bounce, today is just as good as any. While prompt Nymex values have tumbled a cool dollar over the past 5 weeks, they have suffered the least on Tuesdays. In fact, over the course of the last four Tuesdays, prices are actually up 20 cents. However, don’t get too comfortable with that long position. It deserves mention here that while Tuesdays have been friendly to bulls, Wednesdays have been a nightmare as prices tumbled a total 69 cents over the past four Wednesdays.

In daily technicals, June has immediate support at yesterday’s $4.105 low and then again at the psychologically important $4.00 level. On the upside, June has resistance at $4.145 and then again $4.31. By 7:00 P.M. (EST) last night, June futures had dipped to $4.088 before rebounding back to $4.12.

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