Natural gas yesterday traded with the positive node and settled 4.4% up at 166.40 slightly lower from the highs as profit takers arrived after the fuel reached 5 week highs on extremely hot weather. Investors also eyed Thursday’s closely-watched U. S. government report on natural gas supplies. Natural gas prices were boosted by forecasts showing extremely warmer-than-normal weather across most parts of the U. S. in the coming ten days. The Commodity Weather Group said Tuesday that temperatures were expected to reach 38 Celsius later this week from the Mississippi River to the mid-Atlantic. Chicago is expected to reach 100 in two days and Washington may see 99 by the end of the week, according to the National Weather Service. Meanwhile, market players shifted their focus to the U. S. Energy Information Administration’s closely-watched weekly report on natural gas inventories scheduled for Thursday. The smaller than expected increase indicated that demand for the fuel is better than expected and suggested that demand for natural gas among power utilities remains strong. Speculation that utility providers in the U. S. were switching from pricier coal to cheaper natural gas provided further support over recent weeks. For today's session market is looking to take support at 161.3, a break below could see a test of 156.1 and whereas resistance is now likely to be seen at 170.2, a move above could see prices testing 173.9.

NATURAL GAS

Nat. Gas trading range for the day is 149.9-159.9.

Natural gas settled 4.4% up slightly lower from the highs as profit takers arrived

Prices found some support from forecasts showing warmer than normal weather.

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

Natural Gas is holding with a support at 149.9 and resistance will be likely at 159.9.

SELL NAT. GAS JULY BELOW 162 SL 164.50 TGT 160.50-158. MCX