Commodity Trading Tips for Natural gas by KediaCommodity

Commodity Trading Tips for Natural gas by KediaCommodityNatural gas settled -0.92% down at 152.20 as warm weather forecasts worked with the overextended inventory levels to create a bearish environment for the commodity. The september contract is due to expire today may often leads to volatile sessions as market participants look to close out positions. Updated weather forecasts predicted normal or above normal temperatures for most of the country into early October, dampening early Autumn demand. The CWG said earlier that warmer than normal temperatures are expected across the Midwest and East Coast over the next two weeks, keeping demand for heating "relatively low" for this time of year. Ongoing concerns over bloated US inventory levels also added to the selling pressure. The US EIA said last week that natural gas storage in the US rose by 67bcf, just above market expectations for an increase of 64bcf. A bout of extreme heat across much of the US earlier in the summer helped boost natural gas prices above the key $3 level in late-July. Prices rallied to a 2012 high of $3.275mBtu on July 31. But futures have come under heavy selling pressure since the start of August, after extended weather forecasts pointed to milder weather across most parts of the US For today's session market is looking to take support at 150.4, a break below could see a test of 148.5 and where as resistance is now likely to be seen at 154.2, a move above could see prices testing 156.1.

Trading Ideas:

Nat. Gas trading range for the day is 148.53-156.13.

Natural gas fell as forecasts showing mild temperatures across much of U. S. through late-September

Ongoing concerns over bloated U. S. inventory levels also added to the selling pressure.

Total U. S. gas supplies stood at 3.469 trillion cubic feet, 10% above last year's level