Naturalgas settled down -0.97% at 315.70 dropped from highs after updated weather-forecasting models called for seasonably mild temperatures to edge out a cold snap that sent prices soaring last week. A recent blast of cold air that gripped the eastern U. S. will see reinforcements through the end of January, though normal to above-normal temperatures could reach the heavily populated eastern U. S. in the first half of February, which sparked a round of profit taking. The heating season from November through March is the peak demand period for U. S. gas consumption. Approximately 52% of U. S. households use natural gas for heating, according to the Energy Department. Total U. S. natural gas storage stood at 2.423 trillion cubic feet as of last week, approximately 13% below the five-year average for this time of year. Natural-gas inventories have fallen by 1.411 trillion cubic feet since Nov. 8 as frigid winter temperatures in the U. S. led households to burn more fuel in furnaces to heat their homes. Some expect supplies at the end of the winter heating season in March to be at their lowest in six years. Early withdrawal estimates for this week's storage data range from 170bcf to 239bcf, compared to a drop of 191bcf during the same week a year earlier. The five-year average change for the week is a decline of 162bcf. Data from the CFTC released Friday showed that hedge funds and money managers increased their bullish bets in natural gas futures in the week ending Jan. 21. Technically market is under long liquidation and getting support at 300.9 and below same could see a test of 286.1 level, And resistance is now likely to be seen at 336.1, a move above could see prices testing 356.5.

Trading Ideas:

Naturalgas trading range for the day is 286.1-356.5.

Natural gas turned lower as investors cashed out of the market to lock in gains from a furious rally that took prices to the highest level.

Updated weather forecasting models called for fresh blasts of cold air to sweep across US through the end of January and into early February.

Bullish speculators spent the session betting that colder weather will increase demand for the heating fuel.