Natural Gas yesterday traded with the positive node and settled 1.32% up at 144.20 on rupee weak which supported the price a lot, where us international market where down following a long holiday weekend as traders readjusted positions ahead of the expiration of the front-month June contract. Natural gas prices have been on the decline since mid-last week, losing more than 9% in the past three sessions. Speculation that utility providers in the US were switching from pricier coal to cheaper natural gas provided further support over recent weeks. Meanwhile, cooler weather forecasts weighed on the commodity after meteorologists predicted normal or below normal temperatures in the eastern half of the US from May 30 through June 3. Demand for natural gas tends to fluctuate in the summer based on hot weather and AC use. Average summer temperatures decrease the need for gas-fired electricity to cool homes, dampening demand for natural gas. Meanwhile, some traders remained concerned over elevated US storage levels. The US EIA said last week that natural gas storage in the US rose by 77bcf 2.74tcf last week, 38% above the same week a year earlier and 38% higher than the five-year average. For today's session market is looking to take support at 141, a break below could see a test of 137.7 and where as resistance is now likely to be seen at 146.9, a move above could see prices testing 149.5.

Trading Ideas:

Nat.Gas trading range for the day is 137.73-149.53.

Natural gas jumped above 1% on rupee weakness despite of fall in international market.

Speculation that utility providers were switching from pricier coal to cheaper natural gas.

Demand for natural gas tends to fluctuate in the summer based on hot weather.