While Natural-gas inventories showed a big build of 78 bcf for the past week, the market expected an even larger build of 88 bcf.
In reaction to the "miss," nearby natural-gas prices rocketed through big stops on short positions at 2.95 and 3.00, propelling natural gas to an intraday high of 3.036 just before the Thursday close.
The Setup
More significantly, however, is the chart setup, which now is developing into a June Double-Bottom pattern at coordinates of 2.935 (June 5) and at 2.916 (June 14), propelling price toward a confrontation with key resistance lodged between 3.05 and 3.10.
If hurdled, natural gas will trigger upside potential that projects to 3.20, and then to 3.26.
Should hurricane season interject some uncertainty about production and/or access to supply, then natural gas could climb in parabolic form.
