Natural gas yesterday traded with the negative node and settled -2.84% down at 211.1 snapping three days of gains, tumbling to a daily low as investors cashed out of the market to take advantage of a rally that took prices to a 5 month peak. Initially natural gas futures rose to 220, the highest price since August 5, prompting some investors to sell their position on profit taking despite forecasts for cold weather in key heating areas in the U.S. next week. The temperatures in the U.S. Northeast would be significantly colder than normal from Jan 26 to Feb 4. For today's session market is looking to take support at 207.7, a break below could see a test of 204.2 and where as resistance is now likely to be seen at 217.3, a move above could see prices testing 223.4.

Trading Ideas:

Natural Gas trading range is 204.2-223.4.

December world aluminum output 2.128m tons, up 70,000 tons - IAI

Natural gas looks to have a support at 208.60 and resistance at 214.40

The U.S. Northeast is a key gas-heating area. Approximately 52% of U.S. households use natural gas for heating.