Natural gas finished higher on short covering Saturdayby traders after the prices fall last two days on forecasts of moderating temperatures in the U.S. Midwest and Northeast later this month. Gas inventories are abundant, with total gas in storage as of Jan. 1 at 3.123 trillion cubic feet, 11% above the five-year average and 10% above last year's level. Natural Gas yesterday we have seen that market has moved 0.57%. Market has opened at 261.4 & made a low of 261.4 versus the day high of 263. The total volume for the day was at 875 lots and the open interest was at 9352.Now support for the Natural Gas is seen at 261.40 and below could see a test of 260.60. Resistance is now likely to be seen at 263.00, a move above could see prices testing 263.80.

Trading Ideas:

Natural gas finished higher on short covering after the prices fall last two days

Now resistance is at 264.80 above this a rally till 267-270 can be seen.

Gas inventories are abundant with total gas in storage at 3.123 trillion cubic feet

BUY NAT GAS JAN @ 260 SL 256.10 TGT 262.80-264.60-267.50.MCX