Natural Gas yesterday traded with the negative node and settled -3.15% down at 101.5 once again fell below the key $2 level on NYMEX hitting a fresh 10-year low as the bearish sentiment on the heating fuel remained intact amid ongoing concerns over elevated US storage levels. Natural gas futures have been hitting a string of fresh 10-year lows over the past two weeks, as market sentiment has been dominated by ongoing concerns over waning demand and elevated US storage and production levels. But prices regained strength in the two sessions as traders closed out bets on lower prices after futures moved into oversold territory. Also supporting prices was a quick wave of summer-like temperatures in the US Northeast, but the hot weather was not seen as significant enough to boost demand in the long-term. Market expect the near-term downtrend in prices to continue, with some market participants expecting prices to fall to $1.85 in the short-term and eventually test the all-time low of $1.02 hit in 1992. 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. According to market participants, popular trades include trying to call a bottom on declining prices while others focus on volatile price movements in an attempt to exploit price differences for a quick profit. For today's session market is looking to take support at 100.1, a break below could see a test of 98.8 and where as resistance is now likely to be seen at 103.7, a move above could see prices testing 106.

Trading Ideas:

Nat.Gas trading range for the day is 98.77-105.97.

Natural gas fell below 102 level as the bearish sentiment on the heating fuel remained intact.

Nat.gas lows by ongoing concerns over waning demand and elevated storage and production levels.

Hot weather was not seen as significant enough to boost demand in the long-term.