Natural gas yesterday traded with the negative node and settled -0.34% down at 178.5 as milder weather forecasts in the US and easing concerns over a disruption to supplies in the Gulf of Mexico dragged down prices. Trade was slim as the NYMEX floor trading was to remain closed for the US Labor Day holiday. The US NWS said Friday that it expected temperatures in the eastern and southern US states to cool through the 2nd week of Sept. In its six-to-ten day weather forecast, the NWS said that tropical storm activity in the Gulf of Mexico was likely to push hot air away from the region, causing temperatures to drop.Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand. Meanwhile, many natural gas producers which operate in the Gulf escaped major damage from Tropical Storm Lee, which was downgraded to a depression after making landfall along the Louisiana coast on Sunday. Natural gas prices remained supported after the US NHC said that another storm system had intensified over the open Atlantic on Sunday. For today's session market is looking to take support at 177.4, a break below could see a test of 176.4 and where as resistance is now likely to be seen at 180.2, a move above could see prices testing 182.

Trading Ideas:

Natural Gas trading range is 176.4-182.

Natural gas dropped as milder weather forecasts and easing concerns over disruption to supplies dragged  prices.

Many natural gas producers which operate in the Gulf escaped major damage from Tropical Storm Lee

Natural gas supported after US National Hurricane Center said that another storm system had intensified