Naturalgas settled down -4.13% at 287.60 dropped on Monday after updated weather-forecasting models continued to call for a thawing trend to settle in over much of the U. S. through the third week of February. Weather forecasting services called for moderating temperatures to settle in over the eastern half of the country during the next two weeks, which should curb demand for commodity at the nation's thermal power plants. Mild temperatures this time of year prompt homes and businesses to cut back on their heating. MDA Weather Services said it expects a "more aggressive warm up" in the Midwest by late next week, while a "more substantial warmth" will build over the central U. S. in its 11-to-15-day forecast. Reports that pockets of the central and eastern U. S. could see above-normal temperatures fueled the selloff as well. Meanwhile, U. S. supply levels also remained in focus. Total U. S. natural gas storage fell by 262bcf last week to 1.923tcf, approximately 22% below the five-year average for this time of year and nearly 29% below last year's unusually high level. Natural-gas inventories have fallen sharply since November as frigid winter temperatures in the U. S. led households to burn a higher than normal amount of the fuel in furnaces to heat their homes. Data from the CFTC released Friday showed that hedge funds and money managers reduced their bullish bets in natural gas futures in the week ending Feb. 4. Technically market is under long liquidation as market has witnessed drop in open interest by -2.91% to settled at 10478 while prices down -12.4 rupee, now Naturalgas is getting support at 282 and below same could see a test of 276.4 level, And resistance is now likely to be seen at 296.5, a move above could see prices testing 305.4.

Trading Ideas:

Naturalgas trading range for the day is 276.4-305.4.

Natural gas dropped after updated weather-forecasting models continued to call for a thawing trend to settle in over much of the U. S.

Updated weather forecasting models pointed to moderating temperatures that would curb demand for the heating fuel.

Bearish speculators are betting that milder weather will decrease demand for the heating fuel.