Natural Gas April 18 contract rallied yesterday 1.5% to $2.62 supported from bullish weather forecasts for the first 10 days of April. The price is still rising during early Tuesday morning session reaching the $2.64, up 1%.Natural Gas April option contract expires today and the May contract would be the prompt contract form tomorrow.
According to the weather forecast models, the North East US would have a pretty strong cold storm with possible surprising lower temperatures than the average for the month April. Looking at the below weather map, we could easily observe the severe cold front at April 5, covering all North East USA.
Natural Gas April18 contract found support at the lower bound of the downtrend channel and has been bouncing up since yesterday up to the upper bounds of the channel at $2.64. Possible break above the channel could create bullish momentum with next target the $2.70 resistance levels.