Natural Gas yesterday traded with the positive node and settled 3.03% up at 181.60 push higher as the five day rally continued to lift the heating fuel. Natural gas prices surged nearly 3% on Monday to the highest levels of the year, after updated weather forecasts showed cooler-than-normal temperatures were expected across most parts of the US in the first two weeks of October. Market is betting on the cooler weather potentially leading to some early-Autumn demand for the heating fuel. Natural gas demand typically rises in the summer as air-conditioning use boosts utility demand, then sinks in the fall as demand weakens ahead of the peak winter heating season. Despite the recent upward move in prices, ongoing concerns over bloated US inventory levels were likely to cap further gains in the near-term. The US Energy Information Administration said last week that natural gas storage in the US rose by 80 billion cubic feet to a total of 3.576 trillion cubic feet, 8.6% above the five-year average level for the week. The shoulder season is the period in autumn when gas demand typically slackens and prices fall. In yesterday's trading session natural gas has touched the low of 176.5 after opening at 176.5, and finally settled at 181.6. For today's session market is looking to take support at 177.7, a break below could see a test of 173.9 and where as resistance is now likely to be seen at 184.2, a move above could see prices testing 186.9.

Trading Ideas:

Nat.Gas trading range for the day is 173.87-186.87.

Natural gas rose as forecasts for cooler weather in the Midwest signaled higher demand for the heating fuel.

Despite the recent upward move in prices, ongoing concerns over bloated U.S. inventory levels were likely to cap further gains

Stockpiles totaled 3.576 trillion cubic feet in the week ended Sept. 21, 8.6 percent above the five-year average for the period