Commodity Trading Tips for Natural Gas by KediaCommodity

Natural-GasNatural Gas yesterday traded with the negative node and settled -0.6% down at 215.40 extending Tuesday's losses after weather forecasting models predicted warmer temperatures settling in for a good portion of the country in the coming days. Weather forecasts issued earlier pointed to milder temperatures arriving in the key Northeast and Midwest markets over the next six to 10 days. Warmer temperatures in the U.S. spring season push natural gas prices down, as the need for heating diminishes. As late spring and early summer approach, however, rising temperatures hike demand for natural gas as more and more homes and businesses crank up their air-conditioning units to keep cool. The National Oceanic and Atmospheric Administration said in its one-month temperature forecast released on Sunday that above-normal temperatures will settle in over large swaths of the U.S. this month. Natural gas traders looked ahead to a closely-watched U.S. government report on natural gas supplies due out Thursday in an attempt to gauge the strength of late-winter heating demand. Early withdrawal estimates range from 45 billion cubic feet to 97 billion cubic feet. Total U.S. natural gas storage stood at 1.781 trillion cubic feet as of last week, 18.5% only 3.5% above the five-year average. In yesterday's trading session natural gas has touched the low of 214.6 after opening at 216.9, and finally settled at 215.4. For today's session market is looking to take support at 214.1, a break below could see a test of 212.8 and where as resistance is now likely to be seen at 217.2, a move above could see prices testing 219.

Trading Ideas:

Nat.Gas trading range for the day is 212.8-219.

Natural gas dropped as forecasts showing milder weather for several days next week continued to dampen sentiment on the fuel.

EIA data showed that gross natural gas production in January fell nearly 1 percent from December levels.

Today natural gas storage: EXP: -89B PREV: -95B. Actual is at 8.00PM