Natural Gas Futures Recover Ground Early as Weather Pattern in ‘Variable State’

After heavy selling last week, natural gas futures gained back some ground in early trading Monday, though analysts saw potential for an imminent test of a key nearby support target. Coming off a 35.8-cent sell-off in Friday’s session, the December Nymex contract was up 5.7 cents to $4.848/MMBtu at around 8:45 a.m. ET. 

The December contract closed out last week’s trading just above support at the 100-day moving average, analysts at EBW Analytics Group observed.

“If technical support can hold, a rebound above $5.00 appears possible,” the EBW analysts said. “If support fails, however, the December contract may quickly sink toward $4.50.”

ICAP Technical Analysis pegged $4.758-4.711-4.701-4.650 as the “zone to focus on” for traders heading into the new work...