Naturalgas settled up 0.62% at 228.90 but held range bound on Tuesday as investors bet a recent spate of mild U.S. temperatures will result in a bearish supply report due out on Thursday. Below-normal temperatures that continue to make their way across the Midwest and eastern U.S. have likely prompted households to throttle back on their air conditioning, which has resulted in several days of losses for natural gas. The U.S. government is due to release its weekly supply report on Thursday, with many investors in standby mode ahead of then. The U.S. EIA said in its weekly report on July 24 that natural gas storage in the U.S. rose by 90bcf during the week before. Total U.S. natural gas storage stood at 2.219tcf as of last week, narrowing the deficit to the five-year average to 23.5%, down from a record 54.7% at the end of March. Injections of gas into storage have surpassed the five-year average for 14 consecutive weeks. Market are expecting a build of 90bcf for this week, again well above the five-year average for the week. Last week Natural gas dipped to a seven-month low in the first part of the week amid mild weather forecasts across the most U.S. territory. Mild weather usually reduces demand for the commodity dependent on air conditioning use. Nevertheless, natural gas reversed its trend after the EIA weekly inventory update. U.S. natural gas storage rose 90bcf in the week ended Jul 18, while experts called for an increase of 95bcf. Total natural gas inventories stood at 2.219tcf, more than 650bcf below the five-year average. Technically market is getting support at 227 and below same could see a test of 225.1 level, And resistance is now likely to be seen at 230.5, a move above could see prices testing 232.1.

Trading Ideas:

Naturalgas trading range for the day is 225.1-232.1.

Natural gas gains but held range bound as investors bet a recent spate of mild U.S. temperatures will result in bearish supply report.

The U.S. government is due to release its weekly supply report on Thursday, with many investors in standby mode ahead of then.

Total U.S. natural gas storage stood at 2.219tcf as of last week, narrowing the deficit to the five-year average to 23.5%.