Commodity Trading Tips for Natural Gas by Kedia Commodity

Natural gasNatural gas yesterday traded with the negative node and settled -1.69% down at 106.5 dropped to yet another multi year low as the bearish sentiment on the heating fuel remained intact amid ongoing concerns over elevated US storage levels. Natural gas prices have plunged almost 21% since the beginning of March and are down nearly
31% since the start of 2012 as market sentiment has been dominated by concerns over elevated US storage levels and mild winter weather that has limited demand for the fuel. US gas inventories ended the winter at a record high 2.5tcf, about 60% above normal and well above the previous March 31 high of 2.148 trillion set in 1983. Market expect the near-term downtrend in prices to continue amid indications demand for the heating fuel will remain weak in the near-term. According to the weather group, temperatures may rise 4.4 to 7.8 Celsius above normal throughout the East from April 14 to April 18. The US gas market is entering the so-called shoulder season. Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning. For today's session market is looking to take support at 105.2, a break below could see a test of 103.8 and where as resistance is now likely to be seen at
108.9, a move above could see prices testing 111.2.

Trading Ideas:

Nat. Gas trading range for the day is 103.83-111.23.

Natural gas dropped as the bearish sentiment on the heating fuel remained intact over elevated storage levels.

Natural gas prices have plunged almost 21% since March and are down nearly 31% since the start of 2012.

Industry weather group MDA Federal said that it warmer weather was expected to return to the US next week.