Naturalgas settled up 1.19% at 245.80 as investors bet a heat wave making its way across the eastern U. S. will prompt households to ramp up their air conditioning. While showers and thunderstorms may cool off parts of the U. S. this week, a heat wave will hold its ground through the third week in August. "Weather systems over the northern U. S. early in the outlook will lead to cooler than normal temperatures over many regions. However, high pressure will strengthen after August 20th and bring a nice warm up to much of the U. S.," Natgasweather. com said in its Aug. 19-25 outlook earlier Tuesday. "The southern U. S., including Texas, will remain very warm to hot throughout with highs reaching the 90s and 100s." Higher temperatures often fuel demand for more natural gas as households and business ramp up their air conditioners. Meanwhile Natural gas accounted for 27.1 % of the US electricity generation market in May 2014, well above the 25.8% level recorded for the same month in 2013. Coal power accounted for 36.9% of US power generation in May 2014, below the 37.2% recorded for the same month in 2013. Natural gas as a share of the US power generation industry peaked at 34% in July 2012 and nearly equalled the share of coal power in April 2012. Cheap natural gas prices in early 2012, prompted by a surge in US natural gas output from the deployment of horizontal drilling and hydraulic fracturing technology, led US power companies to switch to natural gas power. Technically market is under short covering as market has witnessed drop in open interest by -7.41% to settled at 7719 while prices up 2.9 rupee, now Naturalgas is getting support at 243.8 and below same could see a test of 241.8 level, And resistance is now likely to be seen at 247.3, a move above could see prices testing 248.8.

Trading Ideas:

Naturalgas trading range for the day is 241.8-248.8.

Natural gas gains as weather patterns called for warmer summer temperatures across much of the U. S. later this week.

Updated weather-forecasting models predicted a heat wave to move across the eastern U. S. from August 18 to August 22.

Injections of gas into storage have surpassed the five-year average for 16 consecutive weeks, alleviating concerns over tightening supplies.