Natural Gas Falters at Resistance
Natural gas for May delivery was significantly higher early in the session on Tuesday as traders monitor weather forecasts and the potential for an economy re-opening next month. $1.97 was touched briefly before sellers resumed control and brought the prompt-month under $1.80. Rumors of LNG contract cancellations may have been the culprit for the selloff. Technically, support is near $1.50 while $2.00 is resistance. The January 2021 contract hit the highest level since November 2017, however, as the market anticipates a supply contraction heading into 2021.