Naturalgas settled up 0.77% at 235.70 edged higher on Monday, though gains were likely to remain limited as short-term weather forecasts kept calling for mild summer temperatures across much of the US. Natural gas prices have been under heavy selling pressure in recent weeks as unseasonably cool summer temperatures in much of the U.S. limited demand for the fuel. Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. Meanwhile, the U.S. Energy Information Administration said in its weekly report on July 31 that natural gas storage in the U.S. rose by 88 billion cubic feet last week. The number was below expectations for an increase of 93 billion cubic feet, but higher than the five-year average change for the week of an increase of 42 billion cubic feet. Total U.S. natural gas storage stood at 2.307 trillion cubic feet as of last week, narrowing the deficit to the five-year average to 21.7% from 23.5% a week earlier and down from a record 54.7% at the end of March. The EIA's next storage report is slated for release on Thursday, August 7, with analysts expecting a build of 87 billion cubic feet for the week ending August 1. Inventories rose by 90 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 49 billion cubic feet. Technically market is under fresh buying as market has witnessed gain in open interest by 8.72% to settled at 8554 while prices up 1.8 rupee, now Naturalgas is getting support at 233 and below same could see a test of 230.4 level, And resistance is now likely to be seen at 237.3, a move above could see prices testing 239.

Trading Ideas:

Naturalgas trading range for the day is 230.4-239.

Natural gas rose after updated weather-forecasting models called for a return of seasonably warm temperatures across the U.S.

Natgasweather.com reported that high pressure will hover over the western, southern, and eastern U.S. with temperatures warming into the 90s and 100s.

Investors digested last week's EIA's supply report rose by 88bcf, below expectations for an increase of 93bcf.