As bearish weather and storage fundamentals weigh on natural gas prices amid oversold conditions, technical indicators are suggesting the potential for the market to pivot higher. 

Technical analysts pointed to relatively heavy short positioning and volatile price action, both of which can be a recipe for turnarounds. Still, an upturn may not be immediate, with the mid-range outlook for natural gas futures remaining bearish as the market struggles to find a bottom.

March New York Mercantile Exchange gas futures rebounded Monday to settle at $1.659/MMBtu, up 5.6 cents day/day in its penultimate session as the lead contract. Tuesday, the contract seesawed between gains and losses, ultimately ending on the negative side of the ledger, down 4.4 cents at $1.615. 

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