Naturalgas on MCX settled down -0.35% at 226.80 in it's Wednesday's trade, Thursday Indian market's where closed on account of Republic Day holiday. While Yesterday Natural gas prices on NYMEX extended its recent winning streak to four sessions with move to the upside by +1.50% to settled at $3.4MMBtu. As support seen data showed that natural gas supplies in storage in the U. S. fell more than expected last week. The US EIA said in its weekly report that natural gas storage in the U. S. declined by 119bcf in the week ended January 20, exceeding market expectations for a drop of 117bcf. That compared with a withdrawal of 243bcf in the preceding week, 211 billion a year earlier and a five-year average drop of 176bcf. Total natural gas in storage currently stands at 2.798 trillion cubic feet, according to the US EIA, 11.1% lower than levels at this time a year ago and less than 1% below the five-year average for this time of year. Meanwhile, a colder system will sweep across the central and eastern U. S. later this week to finally end the current mild spell as overnight lows drop below freezing across all but the far southern U. S. Extended models pointed to colder conditions from January 31 through February 3, maintaining near to stronger than normal natural gas demand. Weather models initially predicted mild temperatures throughout most parts of the U. S. during the period. Natural gas markets have been volatile in recent weeks, changing course rapidly in response to shifting outlooks in short-term weather patterns. About half of U. S. homes use natural gas for heating. Technically market is getting support at 223.9 and below same could see a test of 221.1 level, And resistance is now likely to be seen at 229.6, a move above could see prices testing 232.5.

Trading Ideas

# Naturalgas trading range for the day is 221.1-232.5.

# Naturalgas on MCX settled down on Wednesday while Natural gas prices on NYMEX extended its gain upside by +1.50%.

# A relatively cold weather system will track across the East, leaving much of the country much colder compared to recent weeks.

# Natural gas inventories report showed a draw of -119Bcf versus expectations for inventory to be a draw of approximately -121 Bcf.