Natural Gas Futures ‘Due for a Technical Rebound’ as February Prices Called Higher Early

With technical factors potentially at play, natural gas futures climbed modestly in early trading Wednesday, even as updated forecasts continued to advertise an exceptionally bearish January temperature outlook.

After plunging 48.7 cents in the previous session, the February Nymex contract was up 6.7 cents to $4.055/MMBtu at around 8:50 a.m. ET.

Price action overnight included a “retest of support at $3.90,” suggesting the market is “attempting to form a short-term technical bottom to stem the bleeding,” according to EBW Analytics Group analyst Eli Rubin.

However, forecasts as of early Wednesday further eroded the January weather-driven demand outlook day/day, according to the analyst.

“Weather models indicate a mild pattern extending deep into January,” with...