Commodity Trading Tips for Natural gas by KediaCommodity

Ajay Kumar Kedia 5 December 2013

Naturalgas settled down by -0.20% at 247.90 overall market was flat and prices was trading in the range overall outlook remain firm after updated weather forecasting models continued to call for chilly temperatures across much of the U. S., while hopes for a bullish supply report due out Thursday also supported prices. Colder temperatures hike the need for heating this time of year, thus increasing demand for natural gas at the nation's thermal power generators. Updated weather forecasting models called for cold, wintry weather to hover over a large portion of the U. S. during the next two weeks, which boosted prices by stirring up hopes that demand for the commodity will rise. Meanwhile, U. S. supply levels remained in focus. The Energy Information Administration said last week that natural gas in storage fell by 13bcf compared to expectations for a withdrawal of 10bcf. Inventories fell by 2bcf in the same week a year earlier, while the five-year average change for the week is a decline of 15bcf. Total U. S. natural gas storage stood at 3.776 trillion cubic feet as last week, 2.6% below last year's unusually high level but 0.5% above the five-year average for this time of year. Early withdrawal estimates for this week's storage data range from 109bcf to 148bcf, compared to a drop of 62bcf during the same week a year earlier. The five-year average change for the week is a decline of 41bcf. Technically market is under long liquidation as market has witnessed drop in open interest by -4.57% to settled at 14821 while prices down -0.5 rupee, now Naturalgas is getting support at 245.9 and below same could see a test of 243.8 level, And resistance is now likely to be seen at 250.5, a move above could see prices testing 253.