Natural gas yesterday traded with the positive node and settled 2.28% up at 153.80 but before that we have seen market had opened at 150.60 and dropped to the day's low at 146.80 as traders were wary of pushing prices higher ahead of US government report on natural gas supplies. Natural gas prices surged nearly 4% in the previous session, as extended forecasts showing warm weather across most parts of the U. S. into early June provided support. Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning. But the strong gain prompted investors to cash out of the market to lock in gains ahead of today's supply data. Sentiment on the fuel has improved in recent weeks. Prices are up more than 30% since hitting a decade-low of $1.902 on April 19, amid indications major North American natural gas producers were cutting back on production. Speculation that utility providers in the US were switching from pricier coal to cheaper natural gas provided further support over recent weeks. However, market players noted that sustained prices back above $2.50 and toward the $3 level likely would inspire some switching back to coal. For today's session market is looking to take support at 148.8, a break below could see a test of 143.8 and where as resistance is now likely to be seen at 156.8, a move above could see prices testing 159.8.

Trading Ideas:

Nat. Gas trading range for the day is 143.8-159.8.

Natural gas shoot up again by +2.28% as news hit that gas producers were cutting back on production.

Profit booking can be seen as investors can cash out of the market to lock in gains ahead of supply data.

US were switching from pricier coal to cheaper natural gas provided further support over recent weeks.