Natural gas yesterday traded with the positive node and settled 1.72% up at 201.1, but still market will be under pressure and may drop toward $4 after failing for a fifth day to break above the 100-day moving average, Gas has traded below the moving average, currently about $4.39 million British thermal units, since Aug. 9.

A break below the September contract’s all-time low of $4.14, reached on May 6, will send the futures to $4. We are seeing a lot of resistance on the up side and if market fail’s to break 208.20 level then we can see another selloff rally and can test 192-190 level once again. Hedge funds and other large speculators cut their bullish bets on natural gas by 23 percent in the week ended Aug. 10. In yesterday's trading session natural gas has touched the low of 195.8 after opening at 197.7, and finally settled at 201.1. For today's session market is looking to take support at 197.3, a break below could see a test of 193.5 and whereas resistance is now likely to be seen at 203.4, a move above could see prices testing 205.7.   Natural Gas trading range is 192.4-204.6.

Natural gas finished up but can dip again on a more moderate weather outlook

Natural gas looks to take resistance at 206 and support is at 198.70.

The natural gas rig count increased last week to 992 rigs

SELL NAT.GAS AUG @ 204.20 SL 206.80 TGT 202.50-200.20-198.60.MCX

NATURAL GAS  $ IS TRADING AT : 4.23$