Natural gas dropped to a second straight yearly decline after a government report showed that U.S. inventories declined less than estimated. Production of natural gas declined 12.4 percent to 582.4 billion cubic meters after a global economic crisis reduced demand for the fuel within Russia and in Europe. Natural Gas yesterday we have seen that market has moved 0.11%. Market has opened at 261.3 & made a low of 260 versus the day high of 261.4. The total volume for the day was at 405 lots and the open interest was at 8000.Now support for the Natural Gas is seen at 260.20 and below could see a test of 259.430. Resistance is now likely to be seen at 261.60, a move above could see prices testing 262.20.

Trading Ideas:

Natural gas trading range is 250-270.

Natural gas dropped after U.S. inventories declined less than estimated

Now resistance is at 264.30 above this a rally till 267-270 can be seen.

Production of gas declined 12.4% to 582.4 billion cubic meters within Russia and in Europe

BUY NAT.GAS JAN ABV 262 SL 259 TGT 264.20-267.20-269.MCX