Natural Gas settled -0.87% down at 194.50 as bargain hunters started buying after thursday’s sell off triggered by a report from the US EIA indicated US gas supplies rose more-than-expected last week. The US EIA said in its weekly report that natural gas storage in the US in the week ended October 12 rose by 51bcf, above market expectations for an increase of 48bcf. Inventories rose by 106bcf in the same week a year earlier, while the five-year average change for the week is an increase of 71bcf, according to US Energy Department data. Meanwhile, market players continued to monitor updated weather forecasts to gauge the strength of early-Autumn heating demand. Meanwhile, updated weather forecasts released Tuesday continued to point to mostly mild temperatures across much of the US in the next 6-10 days, weighing on early-Autumn heating demand. The US NWS also predicted above-normal temperatures for the eastern half of the nation and normal or below-normal readings only in the West. Above average autumn temperatures reduce the need for gas-fired electricity to heat homes, dampening demand for natural gas. Natural gas often reach a seasonal low in October, when mild weather reduces demand, before recovering in the winter, when heating-fuel use peaks. For today's session market is looking to take support at 193.5, a break below could see a test of 192.5 and where as resistance is now likely to be seen at 195.6, a move above could see prices testing 196.7.

Trading Ideas:

Nat.Gas trading range for the day is 192.5-196.7.

Natural gas ended higher as bargain hunters started buying on new forecasts that called for colder-than-normal temperatures.

Traders said ongoing nuclear power plant outages have helped underpin a big technical run up this month

The gas-directed rig count rose this week by five to 427 after posting a 13-year low the previous week