Natural gas yesterday traded with the positive node and settled 0.2% up at 202.8 as the day begins we have seen market tested the high of 206.80 with the supportive news that U.S. inventories declined more than average last week.
The Energy Department may say today that stockpiles fell by 148 billion cubic feet, the five-year average decline for the week is 108 billion.
Industrial demand will rise 1.1 percent to 18.15 billion cubic feet a day this year from 2010’s 17.95 billion, the decline in gas output will “continue throughout 2011 because of a falling drilling rig count in response to lower prices,” the Energy Department said in the report.
In yesterday's trading session natural gas has touched the low of 201.2 after opening at 202.2, and finally settled at 202.8.
For today's session market is looking to take support at 200.4, a break below could see a test of 198 and where as resistance is now likely to be seen at 206, a move above could see prices testing 209.2.
Trading Ideas:
Natural Gas trading range is 198-209.2.
Natural gas settled 0.2% up as inventories declined more than average last week
Heavy snow was forecast to fall on Boston and eastern New England for the rest of the day.
Today natural gas storage: EXP: -146B PREV: -135B
SELL NAT.GAS JAN @ 203 SL 205.20 TGT 201.50-199.50-198.MCX
NATURAL GAS $ IS TRADING AT : 4.474$
