Henry Hub is up another .08 this morning. I think it is time to move back into NBR and UTI and UNT
-could we add UNT to the drilling charts homepage? sure would be nice!
Thursday March 19, 9:24 pm Eastern Time
NYMEX natgas ends up on technicals, firmer cash
NEW YORK, March 19 (Reuters) - NYMEX Hub natgas futures ended higher across the board Thursday in a fairly active session, driven by reports of a firmer physical market and more technical buying after yesterday's break to the upside.
April climbed 6.1 cents to close at $2.30 per million British thermal units after trading today between $2.215 and $2.305. May settled 5.8 cents higher at $2.316. Other months ended up one-half to 5.9 cents.
''They tried to break it down this morning, but when the sell pressure dried up, everyone jumped on it. The AGAs lent some support, and there's some colder weather coming,'' said one Midwest trader, adding some buy stops were hit above $2.29 (basis April).
Most agreed bullish weekly inventory data and forecasts for colder weekend weather helped fuel the buying spree, but with stocks still 218 bcf over year ago and milder spring temperatures just around the corner, some expect further upside to be difficult.
Temperatures across much of the nation are expected to dip to below normal Friday and continue into early next week, but a return to normal or above is forecast for later in the week.
Technical traders said April's close Wednesday above key resistance at $2.205 was bullish and could lead to a test of next resistance in the $2.35 area. Interim support was now seen in the $2.20 area, with major support still pegged at the recent low and double bottom at $2.105. Further buying was expected at $2.06 and $2.00.
In the cash Thursday, Gulf Coast quotes firmed several cents to about the $2.20 level. Midcon pipes gained a similar amount to the high-teens. Chicago city gate gas climbed almost a nickel to the low-$2.30s, while New York was five cents higher at about $2.50.
The NYMEX 12-month Henry Hub strip gained 3.8 cents to $2.421. NYMEX said an estimated 72,113 Hub contracts traded, up from Wednesday's revised tally of 69,918.
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