Naturalgas settled down -0.44% at 249 edged lower on Monday after updated weather-forecasting models predicted below-normal temperatures to sweep in from Canada into the Midwest this week and trek east. A weather system similar to the Polar Vortex from last winter will bring below-normal temperatures to the U. S. Midwest and head east this week, which sent natural gas prices dipping on Monday. Below-normal temperatures this time of year cut into demand for air conditioning, which curbs demand for natural gas.

Supply data from last week pressured prices as well, though bottom fishing prevented prices from plummeting and stabilized the commodity. Total U. S. natural gas storage stood at 2.022 trillion cubic feet. Stocks were 653 billion cubic feet less than last year at this time and 769 billion cubic feet below the five-year average of 2.791 trillion cubic feet for this time of year. Lastweek Natural gas dived to a six-month low following a bearish EIA report— natural gas supplies soared 93 billion cubic feet in the week ended Jul 4 versus a forecast of a climb of 92 billion cubic feet.

That is also above the five-year average change for the current period of 72 billion cubic feet. Meanwhile, total natural gas storage was 2.022 trillion cubic feet, below the five-year average of 2.791 trillion cubic feet. Weather forecasts also added pressure, pointing to cooler temperatures in the most populated U. S. areas. Technically market is under long liquidation as market has witnessed drop in open interest by -1.15% to settled at 8079 while prices down -1.1 rupee, now Naturalgas is getting support at 246.8 and below same could see a test of 244.5 level, And resistance is now likely to be seen at 251.6, a move above could see prices testing 254.1.

Trading Ideas:

Naturalgas trading range for the day is 244.5-254.1.

Natural gas edged lower after updated weather-forecasting models predicted below-normal temperatures to sweep in from Canada into the Midwest.

Stockpiles more than doubled from an 11-year low in March as mild weather curbed power-plant demand

Gas production will help raise inventories to 3.431 trillion cubic feet by the end of October.