Naturalgas yesterday settled up 1.65% at 228.60 after weather forecasting models continued to point to above-normal temperatures settling in for much of the country over the next week. The NWS's six-to-ten-day outlook issued on Sunday called for above-normal readings for a good portion of the US Elsewhere, the Commodity Weather Group LLC predicted hot weather to settle in for the northern US from June 23 to June 27. Hotter temperatures send prices rising on sentiments that demand for natural gas will increase at the country's thermal power plants as businesses and households crank up their air conditioning. Natural gas accounts for about a quarter of US electricity generation. Meanwhile, traders kept an eye out towards US supply levels due for release on Thursday. Total US natural gas storage stood 2.347tcf as of last week, 2% below the five-year average for this time of year. Early injection estimates for this week's storage data range from 83bcf to 95bcf, compared to a 63bcf increase during the same week a year earlier. The five-year average for the week is a build of 80bcf. Elsewhere, a tropical depression that formed in the Caribbean on Monday made landfall on the coast of Belize. Investors paid close attention to the system to see if it emerges in the gas-rich Gulf of Mexico in the coming days and strengthens. Tropical weather systems often disrupt production in the Gulf of Mexico and send prices rising. Technically market is getting support at 225.40 and below same could see a test of 222.20 level, And resistance is now likely to be seen at 232.03, a move above could see prices testing 236.00.

Trading Ideas:

Naturalgas trading range for the day is 222.3-236.1.

Natural gas gained as forecasts for hotter weather across consuming regions, above-normal nuclear plant outages and a stir in tropical activity lent support.

Early injection estimates for Thursday's EIA report range from 85 bcf to 95 bcf, versus a 63-bcf build in the same week last year

A tropical depression that formed in the Caribbean on Monday made landfall on the coast of Belize.