Natural Gas April 2018 contract settled +1% higher on Thursday session at $2.70 amid the slightly bullish EIA Storage report and March cold temperatures forecasts. Natural Gas still extending the last week rally from the lows of $2,60, but if founds strong resistance at the strong level of $2.70, failing to break it until now.
- Weather forecasts models still remaining neutral-bullish for the first half of March, showing most of the days with average temperatures for the month, providing some support on the prices.
- The EIA Storage report for the week ended 23 February came yesterday with a -78 Bcf change in storage, bringing the total storage number to 1.682 Tcf. This compares to the -7 Bcf change last year and -118 Bcf change for the five-year average.
Natural Gas April 2018 contract still trading inside the upward channel where yesterday the upper boundary of the channel rejected once again the price to move above $2.72, settling at $2.70. The price finds strong resistance at $2.70 , failing 4 times to break above it during the last 10 days. In case of new weather bullish forecasts, then the price might try new attempt to break above $2.70 and test the resistance level of $2.75.Any fail to break above, then the price might retest the lower level of the channel of $2.65 and then the strong support of $2.60.