Natural gas yesterday traded with the positive node and settled 0.55% up at 181.8 on short covering after prices dropped pressured by follow-through selling a day after a bearish weekly inventory report, and by moderating weather that should slow demand.
Traders said milder autumn weather has helped pressure front month contracts, while winter months, which have been depressed all year by record high gas production, held better. Baker Hughes data on Friday showed the gas-directed rig count jumped to an eight-month high of 912 this week.
The count remains well above 800, a level that some say is needed to cut output and tighten supplies. Domestic gas production this year is expected to hit a record high 65.79 billion cubic feet (bcf) per day, eclipsing the previous high of 62.05 bcf daily from 1973.
In yesterday's trading session natural gas has touched the low of 181 after opening at 181, and finally settled at 181.8.
For today's session market is looking to take support at 181.2, a break below could see a test of 180.6 and where as resistance is now likely to be seen at 182.2, a move above could see prices testing 182.6.
Trading Ideas:
Natural Gas trading range is 180.6-182.6.
Natural gas ended firm on short covering after prices dropped pressured by follow-through selling
The gas-directed rig count jumped to an eight-month high of 912 this week.
Domestic gas production this year is expected to hit a record high 65.79 billion cubic feet (bcf) per day
Courtesy: Kedia Commodities
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