Naturalgas settled up 2.07% at 231.40 rallied off an eight-month low on Thursday, after data showed that U. S. natural gas supplies rose less than expected last week. The U. S. Energy Information Administration said in its weekly report that natural gas storage in the U. S. in the week ended July 18 rose by 90 billion cubic feet, below expectations for an increase of 96 billion cubic feet. The five-year average change for the week is an increase of 46 billion cubic feet. Total U. S. natural gas storage stood at 2.219 trillion cubic feet. Stocks were 561 billion cubic feet less than last year at this time and 683 billion cubic feet below the five-year average of 2.902 trillion cubic feet for this time of year. Natural gas prices have been under heavy selling pressure in recent sessions after updated weather-forecasting models called for cooler temperatures across most parts of the heavily-populated Midwest and Northeast regions over the next ten days. Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. The US National Weather Service's six- to 10-day forecast calls for cooler-than-normal temperatures in the eastern half of the US, including the large gas markets of Chicago, Boston and New York City, while warmer-than-normal-temperatures will dominate the western US. Technically market is under short covering as market has witnessed drop in open interest by -6.11% to settled at 7656 while prices up 4.7 rupee, now Naturalgas is getting support at 226.7 and below same could see a test of 221.9 level, And resistance is now likely to be seen at 235.1, a move above could see prices testing 238.7.

Trading Ideas:

Naturalgas trading range for the day is 221.9-238.7.

Natural gas shot up after data revealed U. S. stockpiles rose less than expected last week.

The U. S. EIA said in its weekly report that natural gas storage in the U. S. in the week ended July 18 rose by 90 billion cubic feet.

The five-year average change for the week is an increase of 46 billion cubic feet.