Naturalgas settled up 3.63% at 248.20 rallied to the highest level since late-July on Monday, as investors continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel. Trading volumes were expected to remain light on Monday, with US markets closed for the Labor Day holiday. Regular trading on Nymex will resume on Tuesday following Monday's Labor Day holiday. Updated weather forecasting models pointed to warmer temperatures across most parts of the western half of the US for the first week of September, boosting near-term demand expectations. Forecasts originally called for cooler weather during the period. Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. Meanwhile, US supply levels also remained in focus. Total US natural gas storage stood at 3.130 trillion cubic feet as of last week, 1.5% above the five-year average but still 7% below last year's level. Early injection estimates for this week's storage data range from 45 billion cubic feet to 53 billion cubic feet, compared to a 33 billion cubic feet increase during the same week a year earlier. The five-year average for the week is a build of 60 billion cubic feet. Technically market is under fresh buying as market has witnessed gain in open interest by 18.81% to settled at 7232 while prices up 8.7 rupee, now Naturalgas is getting support at 243.1 and below same could see a test of 238 level, And resistance is now likely to be seen at 251.1, a move above could see prices testing 254.

Trading Ideas:

Naturalgas trading range for the day is 238-254.

Natural gas rallied as investors continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel.

Updated weather forecasting models pointed to warmer temperatures across most parts for the first week of September boosting near-term demand expectations

Early injection estimates for this week's storage data range from 45 billion cubic feet to 53 billion cubic feet