Naturalgas yesterday settled up 1.69% at 222.7 as investors returned to the market to seek cheap valuation's after Monday's sell-off. Market players continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel. The U. S. National Weather Service forecast predicted below-normal temperatures covering the heavily populated Northeast and Midwest regions over the next six-to-14 days. Mild summer temperatures reduce the need for gas-fired electricity to cool homes. Meanwhile, U. S. supply levels also remained in focus. Total U. S. natural gas storage stood at 2.745 trillion cubic feet as of last week, 1.2% below the five-year average and 13% below last year's level. Early injection estimates for this week's storage data range from 45 billion cubic feet to 60 billion cubic feet, compared to a 26 billion cubic feet increase during the same week a year earlier. Last week's gas storage report from the U. S. Energy Information Administration showed total domestic inventories rose in the prior week by 58 billion cubic feet to 2.745 trillion cubic feet, about 13 percent below last year's record-high level but only 1 percent below the five-year average. Technically market is under short covering as market has witnessed drop in open interest by -28.22% to settled at 8451 while prices up 3.7 rupee, now Naturalgas is getting support at 219.90 and below same could see a test of 217.00 level, And resistance is now likely to be seen at 224.70, a move above could see prices testing 226.60.

Trading Ideas:

Naturalgas trading range for the day is 217-226.6.

Natural gas regained strength as investors returned to the market to seek cheap valuation's after Monday's sell-off.

Market players continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel.

The U. S. National Weather Service forecast predicted below-normal temperatures covering the heavily populated Northeast and Midwest regions