Commodity Trading Tips for Natural Gas by KediaCommodity

Natural GasNatural gas yesterday traded with the negative node and settled -2.73% down at 175.7 tumbled to a three-month low, after a government report showed that U.S. natural gas stockpiles declined broadly in line with expectations last week. The U.S. EIA said in its weekly report that natural gas storage in the U.S. fell broadly in line with expectations in the week ended February 11, dropping by 233 billion cubic feet, after declining by 209 billion cubic feet in the preceding week. Market had expected U.S. natural gas storage to fall by 233 billion cubic feet. The five-year average withdrawal for the week is 150 billion cubic feet, while the withdrawal for the same week a year earlier totaled 190 billion cubic feet. The report showed that in the East Region, stocks were 135 billion cubic feet below the five-year average, following net withdrawals of 118 billion cubic feet, as cold weather boosted demand during the week. For today's session market is looking to take support at 173.2, a break below could see a test of 170.6 and where as resistance is now likely to be seen at 178.8, a move above could see prices testing 181.8.

Trading Ideas:

Natural Gas trading range is 170.6-181.8.

Natural gas tumbled after a government report showed that U.S. natural gas stockpiles declined

Natural gas looks to have a support at 172.80 and resistance at 178.60

EIA said that that U.S. gas stockpiles fell by 233 billion cubic feet last week