Natural Gas yesterday traded with the negative node and settled -2.26% down at 114.8 came under heavy selling pressure on Monday, re-approaching a ten-year low hit earlier in the month as sentiment on the heating fuel remained downbeat amid ongoing concerns over elevated U.S. supply levels. Weekly storage data from the U.S. released last week showed that natural gas storage in the U.S. rose by 11bcf last week. The build came about two weeks earlier than usual and was the earliest seasonal increase in stored supplies since 2007. Total U.S. natural gas storage stood at 2.380 trillion cubic feet as of last week, 47% above year-ago levels and 54% higher than the five-year average. Latest forecasts from the NOAA show above-normal temperatures covering most of the U.S. into early April, while a large portion of the eastern U.S. will see that weather pattern through June. Early injection estimates for next week’s storage data range from 43bcf to 58bcf, compared to the five-year average decline for the week of 8 billion. Supplies rose by 7bcf in the same week a year earlier. Natural gas prices have plunged almost 13% since the beginning of March and are down nearly 24% since the start of 2012. In yesterday's trading session natural gas has touched the low of 113.9 after opening at 117.6, and finally settled at 114.8. For today's session market is looking to take support at 112.8, a break below could see a test of 110.8 and where as resistance is now likely to be seen at 117.9, a move above could see prices testing 121.

Trading Ideas:

Nat.Gas trading range for the day is 110.8-121.

Natural gas dropped as sentiment on heating fuel remained downbeat amid ongoing concerns over elevated U.S. supply levels

Total U.S. natural gas storage stood at 2.380 trillion cubic feet as of last week, 47% above year-ago levels

Early injection estimates for next week’s storage data range from 43bcf to 58bcf