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Natural Gas gains 1% on cooler weather bets

FXStreet (Mumbai) - Natural Gas futures on NYMEX extended gains from the previous session, on increased bets of cooler weather early next year, after a warmer December.

Natural Gas futures for January delivery trades at USD 3.742/mmBtu levels, up 1.07% compared to previous session’s close of USD 3.706/mmBtu. The upside momentum in Natural Gas prices was also seen on news of a winter storm likely to hit the north-eastern U.S. soon, which may drive demand for heating later this week.

Meanwhile, Energy Information Administration (EIA Natural Gas storage data is due later in US trading which is expected to show a drop in storage levels, likely to push prices higher.

Natural Gas Levels to consider

Natural Gas prices have an immediate resistance located at 3.785 (Dec 8 High), above which gains could be extended to 3.824 (Dec 5 High) levels. Meanwhile, support is seen at 3.717 (20-day SMA), below which it can extend losses to 3.688 (100-day SMA) levels.

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