Commodity Trading Tips for Natural gas by KediaCommodity

Commodity Trading Tips for Natural gas by KediaCommodityNatural gas settled -2.89% down at 176.50 and dropped as investors book profit to lock in gains from an impressive 1week rally. Pressure to book profit see as trader also looked ahead to Thursday’s closely watched US government report on natural gas supplies. Natural gas prices have rallied sharply in recent sessions after updated weather forecasts showed cooler than normal temperatures were expected across most parts of the US in the first two weeks of October. Bullish speculators are betting on the cooler weather potentially leading to some early-Autumn demand for the heating fuel. But the strong advance prompted investors to cash out of the market ahead of Thursday’s closely-watched US inventory report, amid ongoing concerns over bloated supply levels. Inventory did not top the 3.4tcf level in 2011 until October 5, with stocks peaking at a record 3.852 trillion cubic feet in November of last year. Market have warned that without strong demand through the early-Autumn shoulder season, gas inventories will reach the limits of available capacity later this year. The shoulder season is the period in autumn when gas demand typically slackens and prices fall. For today's session market is looking to take support at 173.2, a break below could see a test of 169.8 and where as resistance is now likely to be seen at 182.7, a move above could see prices testing 188.8.

Trading Ideas:

Nat. Gas trading range for the day is 169.83-188.83.

Natural gas ended lower amid profit booking on forecasts of moderating temperatures that may limit demand from power plants.

Today natural gas storage: EXP: 72B PREV: 80B. Actual is at 8.00PM.

Total U. S. gas supplies stood at 3.576 trillion cubic feet, 8.6% above the five-year average level for the week.