Naturalgas settled up 3.95% at 337.20 extended strong gains from last week on Monday, as cold weather hit the eastern U.S., boosting heating demand. Trade volumes were expected to remain light on Monday, with Nymex floor trading remaining closed for the U.S. President’s Day holiday. All electronic trades placed will register on Tuesday, when the market resumes normal trading hours. Nymex natural gas prices surged 8.41% last week, the first weekly gain in three weeks, 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. 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. Speculation that this week’s supply data will show a larger-than-average drawdown in supplies also lent support. Early withdrawal estimates range from 212 billion cubic feet to 240 billion cubic feet. Total U.S. natural gas storage stood at 1.686 trillion cubic feet as of last week, the lowest for this time of year since 2004. Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers increased their bullish bets in natural gas futures in the week ending February 11. Net longs totaled 163,943 contracts, up 7.6% from net longs of 151,338 in the previous week. Technically market is under fresh buying as market has witnessed gain in open interest by 22.1% to settled at 15015 while prices up 12.8 rupee, now Naturalgas is getting support at 329.2 and below same could see a test of 321.1 level, And resistance is now likely to be seen at 342.1, a move above could see prices testing 346.9.

Trading Ideas:

Naturalgas trading range for the day is 321.1-346.9.

Natural gas prices extended gains as cold weather hit the eastern U.S., boosting heating demand.

Natural gas prices surged above 8 % last week as frigid winter temperatures in U.S. led households to burn a higher than normal amount of the fuel

Speculation that this week’s supply data will show a larger-than-average drawdown in supplies also lent support