Natural gas yesterday settled down -0.98% at 202.30 edged lower on Tuesday, as investors were hesitant to drive prices higher one day after futures notched the biggest one-day gain in nearly a month. Traders continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel. Forecasts originally called for mild summer weather during the period. Updated weather forecasting models pointed to hotter-than-normal temperatures in the northern tier of the US from August 17 through August 26, boosting summer cooling demand for the fuel. Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. The September contract has lost nearly 14% over the past three weeks, the biggest three-week drop in eight months, amid concerns over rising inventories and lingering below normal temperatures in the key Midwest and Eastern US markets. Total US natural gas storage stood at 2.941 trillion cubic feet as of last week, 0.7% above the five-year average and rising to a surplus for the first time since March. Early injection estimates for this week's storage data range from 62bcf to 77bcf, compared to a 20bcf increase during the same week a year earlier. Elsewhere, the US EIA said in its weekly report on Thursday that natural gas storage in the US in the week ending August 2 raised by 96bcf, well above market expectations for an increase of 77bcf. Technically market is under long liquidation as market has witnessed drop in open interest by -6.86% to settled at 7970 while prices down -2 rupee, now Natural gas is getting support at 200.10 and below same could see a test of 198.10 level, And resistance is now likely to be seen at 205.00, a move above could see prices testing 207.20. NATURAL GAS

Naturalgas trading range for the day is 198-207.8.

Natural gas prices edged lower after investors locked in gains from Monday's rally and sold the commodity for profits.

Prices shot up on Monday on weather forecasts calling for a return of warmer temperatures, which still provided some support.

Demand for natural gas tends to rise amid heat waves, as homes and businesses throttle up their air conditioners.

Early injection estimates for this week's storage data range from 62 billion cubic feet to 77 billion cubic feet.

SELL NAT. GAS AUG @ 205.50 SL 208 TGT 202.50-198.80.MCX