Natural Gas yesterday traded with the positive node and settled 1.87% up at 201.10 on talk of falling inventories, also support seen on forecasts for more cold weather in key US consuming regions. Weather forecasting services predicted cooler temperatures to stick around the eastern US before springtime weather patterns finally settle in, which pushed up prices as well. The US government will release its weekly report on natural gas supplies on Thursday and market talk that stockpiles will drop sent prices gaining on Wednesday. Early withdrawal estimates range from 88 billion cubic feet to 139 billion cubic feet. Inventories fell by 66 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 74 billion cubic feet. Total US natural gas storage stood at 2.083 trillion cubic feet as of last week, 14.8% above the five-year average for this time of year. The heating season from November through March is the peak demand period for US gas consumption. Nearly 50% of all US households use gas for heating, and weather reports that temperatures will remain on the cooler side in the coming days added to the rally. In yesterday's trading session natural gas has touched the low of 197.2 after opening at 197.5, and finally settled at 201.1. For today's session market is looking to take support at 198.3, a break below could see a test of 195.5 and where as resistance is now likely to be seen at 202.8, a move above could see prices testing 204.5.

Trading Ideas:

Nat.Gas trading range for the day is 195.5-204.5.

Natural gas gained amid continued technical buying and some cold weather expected to return to consuming regions of the nation late this week and next.

Bullish speculators are betting on the cold weather boosting late-winter demand for the heating fuel.

Today natural gas storage: EXP: -136B PREV: -146B. Actual is at 9.00PM.