The NYMEX June natural gas futures contract was steady Monday morning as it recovers from its drop of 6.1 cents Friday and as of 10:29 a.m. EDT (1429 GMT) was trading at $2.326/MMBtu, up 4.7 cents from Friday's settlement.
Phil Flynn, an analyst with PFGBest, said the contract was seeing a "technical bounce" following Friday's selloff, but said the contract needed to climb beyond resistance in order for this to be a sustained rally. Weather forecasts, which show some hotter-than-normal weather for later this month, may not be enough to support prices, he said.
The contract is rallying on "falling production levels, drilling cutbacks, and signs of increasing coal-to-gas switching," according to TFS Energy Futures.
Flynn put support at $2.25/MMBtu and resistance at $2.38/MMBtu.
The contract was trading between $2.273/MMBtu and $2.358/MMBtu.
