Natural gas yesterday traded with the negative node and settled -3.98% down at 178.3 tumbling to a two-week low as investors shifted their focus to mild weather which was expected to limit heating demand. Industry weather group MDA Federal said earlier that a warming trend across the US states was expected as far out as the next 11-to-15 days. According to weather service provider AccuWeather, the high temperature in Chicago on Dec 4 will be 46 degrees Fahrenheit, 7degrees above normal. Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts for late Nov and early Dec on heating demand. Concerns over record-high supply levels in the US also added to the selling pressure. Currently, total US natural gas storage stand at 3.851tcf, hovering below late Nov’s all-time high of 3.852tcf. Stockpiles are 7.3% above the five-year average and 1.1% higher than the same period last year, underlining the view that US gas supplies are sufficient to meet the needs of even an unusually harsh winter. But this year's increase, aided by unusually warm temperatures, offers a much larger cushion than in most years as winter approaches. For today's session market is looking to take support at 175.8, a break below could see a test of 173.4 and where as resistance is now likely to be seen at 182.9, a move above could see prices testing 187.6.

Trading Ideas:

Natural Gas trading range is 173.4-187.6.

Natural gas ended down as investors shifted their focus to mild weather which was expected to limit heating demand.

US inventories typically increase during autumn after air-conditioning demand falls but before heating begins.

Barclays recently said that prices were expected to remain under pressure in the near-term, citing a US supply glut.