Natural gas settled 0.72% up at 153.60 boosted by a bout of bargain buying ahead of the weekend as traders closed out bets on lower prices after futures moved into oversold territory. Natural gas prices came under heavy selling pressure earlier in the week, as forecasts showing cooler temperatures across much of the US through late-September and ongoing concerns over bloated inventory levels weighed on the commodity. But some bargain buying helped lift prices off the lows, after futures moved into oversold territory. Prices had fallen too far, too fast and were due for a technical bounce. Despite Friday’s gains, prices were expected to face strong resistance in the near-term as updated weather forecasts predicted normal or above-normal temperatures for most of the country into early October. 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. Ongoing concerns over bloated US inventory levels were also likely to cap any significant gains in the near-term. For today's session market is looking to take support at 153.2, a break below could see a test of 152.7 and where as resistance is now likely to be seen at 154.1, a move above could see prices testing 154.5.

Trading Ideas:

Nat. Gas trading range for the day is 152.73-154.53.

Natural gas gains amid a high number of nuclear power plant outages ahead of the weekend.

Storage now stands 320 bcf above the same week in 2011 and 278 bcf, above the five-year average level

Concerns remain that inventory overhang will pressure prices this autumn if storage caverns fill to near capacity