Natural Gas settled down -3.09% at 232 after forecasts for mild weather to edge out a heat wave over portions of the eastern half of the U.S. sent natural gas prices plunging on Friday, though by Monday  bottom fishers felt the commodity had fallen too far. Milder temperatures cut into the need for natural gas this time of year, as households and businesses throttle back on their air conditioning, though longer-range forecasts earlier Monday called for a return of seasonably warm temperatures next week, which also supported prices. Investors also continued to digest Thursday's supply report. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ending Aug. 8 rose by 78 billion cubic feet, below expectations for an increase of 83 billion cubic feet. Inventories rose by 70 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 45 billion cubic feet. Injections of gas into storage have surpassed the five-year average for 17 consecutive weeks, alleviating concerns over tightening supplies. Stocks were 530 billion cubic feet less than last year at this time and 575 billion cubic feet below the five-year average of 3.042 trillion cubic feet for this time of year. The EIA's next storage report is slated for release on Thursday, Aug. 21, with analysts expecting a build of 82 billion cubic feet for the week ending Aug. 15. Technically market is under fresh selling as market has witnessed gain in open interest by 10.3% to settled at 7611, now Naturalgas is getting support at 227 and below same could see a test of 222 level, And resistance is now likely to be seen at 237.6, a move above could see prices testing 243.2.

Trading Ideas:

Naturalgas trading range for the day is 222-243.2.

Natural gas dropped after forecasts for mild weather to edge out a heat wave over portions of the eastern half of the U.S.

Inventories rose by 70 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 45 billion cubic feet.

Injections of gas into storage have surpassed the five-year average for 17 consecutive weeks, alleviating concerns over tightening supplies.