In reaction to its bigger-than-expected draw-down in weekly inventories (-68 bcf v. -63 bcf), Natural Gas has popped to a new recovery rally high at 2.98, last seen about one month ago on the way down from the Dec high at 3.99 to the Feb 22 low at 2.52.
The Feb-Mar recovery rally is approaching its most powerful resistance zone, between 2.98 and 3.10.
The ability or not, of Natural Gas to claw its way above 2.98-3.10 will tell us if a new bull leg is in progress after the devastating 40%, two-month period of relentless weakness.
From an extreme near-term perspective, a close above 3.00 will be a very positive development, and will position NG once again above its major support line off of the 1.61 low on Mar 4 (which was violated during the Feb weakness). Last is 2.977.