Commodity Trading Tips for Natural Gas by Kedia Commodity

Natural gasNaturalgas settled up 1.3% at 226.70 as sentiments remain firm as weather forecasts for above-normal temperatures to remain in place for much of the nation through early September. Updated weather forecasting models pointed to warmer-than-normal temperatures for most of the U. S. Northeast and Midwest for the rest of August, with some meteorological services calling for hotter temperatures to run through Sept. 9. Demand for natural gas tends to rise at the country's thermal power plants amid heat waves, as homes and businesses throttle up their air conditioners. Meanwhile, U. S. supply levels also remained in focus. Total U. S. natural gas storage stood at 3.063 trillion cubic feet as of last week, 1.5% above the five-year average but still 7.2% below last year's level. Early injection estimates for this week's storage data range from 53 billion cubic feet to 69 billion cubic feet, compared to a 64 billion cubic feet increase during the same week a year earlier. The five-year average for the week is a build of 66 billion cubic feet. Technically market is under short covering as market has witnessed drop in open interest by -32.52% to settled at 3471 while prices up 2.9 rupee, now Naturalgas is getting support at 223.9 and below same could see a test of 221.2 level, And resistance is now likely to be seen at 229, a move above could see prices testing 231.4.

Trading Ideas:

Naturalgas trading range for the day is 221.2-231.4.

Natural gas gained on weather forecasts for above-normal temperatures to remain in place for much of the nation through early September.

Updated weather forecasting models pointed to warmer-than-normal temperatures for most of the U. S. Northeast and Midwest

Early injection estimates for this week's storage data range from 53 billion cubic feet to 69 billion cubic feet