Natural gas snapped two days of gains, falling to a daily low, as prices were weighed by forecasts of moderate temperatures in key heating areas in the U. S. later this month. It earlier fell to a daily low of USD4.326 per million British thermal units. Earlier in the day, industry weather group MDA Federal said that temperatures would be in a normal range across most of the U. S. Northeast from February 11 to February 15. Forecast had previously called for colder-than-normal temperatures during that week. The U. S. Northeast is a key gas-heating area. Above-normal winter temperatures reduce the need for gas-fired electricity to heat homes, dampening demand for natural gas. Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts for late-January and February on heating demand. Market has opened at 201 & made a low of 198.7 versus the day high of 203.7. The total volume for the day was at 38583 lots and the open interest was at 18471. Now support for the Natural Gas is seen at 198.4 and below could see a test of 196.1. Resistance is now likely to be seen at 203.4, a move above could see prices testing 206.1.

Trading Ideas:

Natural Gas trading range is 196.1-206.1.

Natural gas ended flat to firm paring its gains as prices were weighed by forecasts of moderate temperatures

Natural gas looks to have a support at 197.40 and resistance at 203.20

Above-normal winter temperatures reduced need for gas-fired electricity to heat homes, dampening demand

SELL NAT.GAS FEB @ 203 SL 205.50 TGT 200.8-198.50-196. MCX

NATURAL GAS $ IS TRADING AT : 4.357$