Natural gas ended slightly lower after a day of choppy trading as mild temperatures in the eastern U. S. outweighed bargain-buying. The economic downturn has curbed demand for natural gas among industrial users, and consumption is expected to increase only modestly this year.

Total gas consumption is forecast to rise 0.7% in 2010 to 62.9 billion cubic feet a day but fall 0.4% in 2011, with cold winter weather driving this year's uptick in consumption. Natural Gas yesterday we have seen that market has moved -0.1%. Market has opened at 206.7 & made a low of 206 versus the day high of 210.7. The total volume for the day was at 24031 lots and the open interest was at 13177. Now support for the Natural Gas is seen at 204.8 and below could see a test of 203. Resistance is now likely to be seen at 209.5, a move above could see prices testing 212.4.

Trading Ideas:

Natural Gas trading range is 203-212.4.

Natural gas ended slightly lower as mild temperatures in the eastern U. S. outweighed bargain-buying

Now resistance is at 208.80 above this a rally till 212-214 can be seen.

Moderate temperatures were expected to limit gas heating over the next few weeks.

BUY NAT.GAS MAR @ 204-205 SL 201.80 TGT 206.80-209-212.MCX