With warmer overnight forecast trends sapping some of the market’s bullish momentum, natural gas futures reversed lower in early trading Wednesday. The April Nymex contract was down 10.8 cents to $2.240/MMBtu at around 8:40 a.m. ET.
The front month ultimately rallied 12.5 cents in Tuesday’s session, mounting a strong finish after probing as low as $2.127 earlier in the session.
Recent price action leaves open the possibility of a double bottom forming for Henry Hub, according to ICAP Technical Analysis analyst Brian LaRose.
“To put such an option in play bulls need to immediately build on Tuesday’s price action and lift Henry Hub above $2.401-2.465-2.471. Decisively,” LaRose said. “Succeed and the case for another run at $3-plus will start to gain...