Natural gas yesterday traded with the negative node and settled -2.18% down at 201.5 on speculation that a stockpile decline last week wasn’t enough to keep supplies from reaching a record by November. The Energy Department said inventories dropped 174 billion cubic feet to 2.542 trillion. The supply-and-demand fundamentals remain really uninspiring for the gas market. The number of rigs drilling for gas in the U.S. reached the highest level in five months last week. In yesterday's trading session natural gas has touched the low of 200.4 after opening at 206.9, and finally settled at 201.5. For today's session market is looking to take support at 198.8, a break below could see a test of 196.2 and where as resistance is now likely to be seen at 205.7, a move above could see prices testing 210.

Trading Ideas:

Natural Gas trading range is 196.2-210.

Natural gas fell after storage report showed that high heating demand continued to cut into U.S. supply overhang

Natural gas looks to have a support at 198.20 and resistance at 203.80

The Energy Department said inventories dropped 174 billion cubic feet to 2.542 trillion.

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