Natural Gas yesterday traded with the positive node and settled 2.62% up at 232.7 as prices continued to draw support from a warmer-than-normal weather outlook that was expected to increase demand for the fuel. Updated weather forecasting models pointed to a wider swath of above-normal temperatures across most parts of the U.S. in the next two weeks, boosting near-term cooling demand expectations. Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.  U.S. supply levels also remained in focus. The U.S. Energy Information Administration said last week that natural gas storage in the U.S. rose by 99 billion cubic feet, above expectations for an increase of 95 billion cubic feet. Early injection estimates for this week’s storage data range from 87 billion cubic feet to 100 billion cubic feet, compared to a 75 billion cubic feet increase during the same week a year earlier. Sentiment on natural gas remained upbeat after the U.S. Energy Department approved natural gas exports from Freeport LNG's Texas terminal last week. The U.S. Energy Information Administration said last week that natural gas storage in the U.S. rose by 99 billion cubic feet, above expectations for an increase of 95 billion cubic feet. In yesterday's trading session natural gas has touched the low of 224.5 after opening at 226.1, and finally settled at 232.7. For today's session market is looking to take support at 227.1, a break below could see a test of 221.4 and where as resistance is now likely to be seen at 235.8, a move above could see prices testing 238.8.

Trading Ideas:

Nat.Gas trading range for the day is 221.43-238.83.

Natural gas gained as prices continued to draw support from a warmer-than-normal weather outlook that was expected to increase demand.

Updated weather forecasting models pointed to a wider swath of above-normal temperatures across most parts of U.S. in next two weeks

Early injection estimates for this week’s storage data range from 87 billion cubic feet to 100 billion cubic feet