Naturalgas settled up 0.11% at 180.20 reversed losses to trade higher 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 31 rose by 32 billion cubic feet, below expectations for an increase of 42 billion and following a build of 52 billion cubic feet in the preceding week. Supplies rose by 83 billion cubic feet in the same week last year, while the five-year average change is an increase of 53 billion cubic feet. Total U.S. natural gas storage stood at 2.912 trillion cubic feet as of last week. Stocks were 535 billion cubic feet higher than last year at this time and 64 billion cubic feet above the five-year average of 2.848 trillion cubic feet for this time of year. A day earlier, natural gas rallied to $2.863, the most since July 30, before turning lower to end at $2.798, down 1.4 cents, or 0.5%, as weather forecasts turned milder. Updated weather forecasting models indicated that hotter weather in the west, central and southern U.S. would give way to more moderate temperatures through August 20. Natural gas accounts for about a quarter of U.S. electricity generation. Outlook remain weak for nat.gas prices after the weather forecasts released Wednesday and Thursday called for cooler temperatures, which could lower natural-gas consumption. Technically market is under fresh buying as market has witnessed gain in open interest by 29.48% to settled at 6905 while prices up 0.2 rupee, now Naturalgas is getting support at 176 and below same could see a test of 171.8 level, And resistance is now likely to be seen at 182.9, a move above could see prices testing 185.6.

Trading Ideas:

Naturalgas trading range for the day is 171.8-185.6.

Naturalgas recovered from the day's low after data showed that U.S. natural gas supplies rose less than expected last week.

Natural-gas inventories rose by 32bcf in the week ended July 31, the U.S. Energy Information Administration said Thursday.

Downward pressure from crude oil prices also continue to weigh on natural gas.