Naturalgas settled up 0.99% at 284.70 rose to a five-week high before turning modestly lower on Friday, as market players cashed out of the market to lock in gains from the previous session’s 5% rally. The gain's comes after the latest stockpile update by the U.S. EIA failed to meet projections. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended June 6 rose by 107 billion cubic feet, below forecasts for an increase of 110 billion cubic feet. Total U.S. natural gas storage stood at 1.606 trillion cubic feet. Stocks were 727 billion cubic feet less than last year at this time and 877 billion cubic feet below the five-year average of 2.483 trillion cubic feet for this time of year. Producers would need to add approximately 2.5 trillion cubic feet to storage by November 1 to meet typical winter demand. Thursday's report sparked a rally and sent natural gas prices ripe for profit taking, though weather forecasts prevented prices from falling too far. Natgasweather.com reported earlier warm weather will settle over the eastern U.S. next week, with highs approaching the 90s all the way up to the northeastern coast. The southern U.S. will see hot and humid temperatures, which should prompt households to crank up their air conditioning and send thermal power producers burning more natural gas to meet demand. The weekly report has regularly jolted the market this spring. Technically market is under short covering as market has witnessed drop in open interest by -6.02% to settled at 6585, now Naturalgas is getting support at 282.3 and below same could see a test of 279.9 level, And resistance is now likely to be seen at 287, a move above could see prices testing 289.3.

Trading Ideas:

Naturalgas trading range for the day is 279.9-289.3.

Naturalgas settled up after U.S. stockpiles of the fuel increased at a slower rate than expected.

The boost comes after the latest stockpile update by the U.S. Energy Information Administration failed to meet projections.

Stocks were 727 bcf less than last year at this time and 877 bcf below the five-year average of 2.483 trillion cubic feet.