Natural gas yesterday traded with the negative node and settled -2.25% down at 173.2 on Thursday for a third straight day, hit by milder weather forecasts despite early buying after a government report showed a weekly inventory draw. The (EIA draw) number was in line with expectations, but it was light on a weather-adjusted basis. Weather forecasts continue to get milder, and that's been driving the market lower. The US EIA said in its weekly report that natural gas storage in the US fell more-than-expected in the week ended February 25, dropping by 85 billion cubic feet, after declining by 81 bcf in the preceding week. In yesterday's trading session natural gas has touched the low of 171.6 after opening at 176.5, and finally settled at 173.2. For today's session market is looking to take support at 171, a break below could see a test of 168.9 and where as resistance is now likely to be seen at 175.9, a move above could see prices testing 178.7.

Trading Ideas:

Natural Gas trading range is 167.7-177.3.

Natural gas ended down but erased some losses after report showed stockpiles fell more-than-expected

Natural gas looks to have a support at 170.60 and resistance at 174.80

U.S. EIA said that natural gas storage fell more-than-expected dropping by 85 billion cubic feet