April natural gas futures bounced off technical support at the start of the week, potentially setting a near-term floor for prices ahead of the shoulder season contract month rolling off the board this week.

The April New York Mercantile Exchange (Nymex) contract traded as low as $1.589/MMBtu Monday before moving higher, settling down 4.4 cents day/day at $1.615. 

“April is well within oversold territory based on slow stochastics and bounced off the bottom of its 20-day Bollinger band ($1.56) Monday morning,” said NGI’s Pat Rau, director of Strategy & Research. “Resistance remains strong in the $2.00 level, but with April going off the board Tuesday, that may not matter.”

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