Front-month May 2013 natural gas took a run to the upside that sent March out with a bang. $4.00 had been strong psychological resistance throughout the life of the April '13 contract and April nattie held below $4.00 pretty well. But Thursday last week saw May '13 natural gas move boldly above that mark, establishing $4.00 as support, rather than resistance.
Twice this afternoon the May contract has tested $4.00 support and each time bounced back upward to $4.03, which is where it closed -- up a full penny on the day all told. Demand uncertainty in the face of winter's long tail set off a round of profit taking with puts accounting for 54% of options trading volume today.
Cooler weather in eastern portions of the United States took a healthy bite out of the national supply last week, inspiring the upticks. But forecasts call for warmer, more seasonal temps in most areas and the decreased demand should give natural gas pricing a corrective pause.