Natural gas ended positive at the latter session on short covering after trading lower for the whole day on forecasts for mild weather, despite expectations that last week's frigid temperatures will lead to a big draw from natural gas storage. Cold weather over the last few weeks has helped draw down relatively high levels of natural gas in storage.

Natural Gas yesterday we have seen that market has moved 1.39%. Market has opened at 255.7 & made a low of 250.2 versus the day high of 260. The total volume for the day was at 39953 lots and the open interest was at 7871. Now support for the Natural Gas is seen at 253.00 and below could see a test of 246.70. Resistance is now likely to be seen at 262.80, a move above could see prices testing 266.30.

Trading Ideas:

Natural gas trading range is 245-270.

Natural gas ended positive at the latter session on short covering

Now resistance is at 262.40 above this a rally till 265-268 can be seen.

Cold weather over the last few weeks has helped draw down relatively high levels of gas in storage

SELL NAT GAS JAN @ 260-262 SL 265.50 TGT 257.80-255-253.50.MCX