Natural Gas yesterday settled up 0.33% at 210.80 prices moved higher on Wednesday after investors priced in forecasts calling for below-normal temperatures across much of the eastern US and later snapped up nicely priced positions. Prices have dropped in recent sessions on weather forecasts calling for cooler-than-normal temperatures for much of the central and eastern reaches of the country to settle in for the next week to ten days. Below-normal summer temperatures cut into demand for air conditioning, prompting gas-fired power generators to rely less on the fuel source, though by Wednesday, investors fell gas prices had fallen enough. Meanwhile, US supply levels remained in focus now that weather forecasts have been priced into trading. Total US natural gas storage stood at 2.786 trillion cubic feet as of last week, just
2% below the five-year average and about 13% below last year's level. Early injection estimates for this week's storage data range from 47 billion cubic feet to 63 billion cubic feet, compared to a 28 billion cubic feet increase during the same week a year earlier. The five-year average for the week is a build of 47 billion cubic feet. Technically market is under short covering as market has witnessed drop in open interest by -2.5% to settled at 12057 while prices up 0.7 rupee, now Naturalgas is getting support at 209.20 and below same could see a test of 207.60 level, And resistance is now likely to be seen at 212.60, a move above could see prices testing 214.40.

Trading Ideas:

Naturalgas trading range for the day is 207.7-214.5.

Natural gas gained as market players returned to the market to seek cheap valuations after prices fell in last some session.

Gains were limited as traders continued to focus on near-term weather forecasts to gauge the strength of demand

Today natural gas storage: EXP: 55B PREV: 41B. Actual is at 8.00PM