Naturalgas on MCX settled down -2.54% at 233.7 as traders took profits following a dramatic rally spurred by expectations of colder weather. Forecasts of falling temperatures are behind the price increase. After an unusually warm autumn, new forecasts show colder temperatures spreading across most of the country starting in the week. That has helped to quell fears that a glut of supply will continue to weigh on prices. Natural gas demand typically picks up when temperatures drop and the fuel is needed for home heating. Market participants are becoming more optimistic that a cold winter could help work down the surplus of natural gas in storage. The U. S. Energy Information Administration reported that natural gas stockpiles drained by 50 billion cubic feet last week, bringing total natural-gas stockpiles to 3.995 trillion cubic feet, 0.6% above levels from last year and 6.25% above the five year average. The five-year average for the week is an injection of around 3.8 billion cubic feet, and last year's storage addition for the week totaled 4 billion cubic feet. Cooler, wetter weather is on tap for the next few days. Cold air from Canada will work into the northern plains, but following a cold blast in northeast due this weekend temperatures are expected to return to above normal. Stockpiles remain about 0.6% above their levels of a year ago and 6.3% above the five-year average. Technically market is under long liquidation as market has witnessed drop in open interest by -19.46% to settled at 4437 while prices down -6.1 rupee, now Naturalgas is getting support at 228.1 and below same could see a test of 222.4 level, And resistance is now likely to be seen at 241.8, a move above could see prices testing 249.8.

Trading Ideas:

Naturalgas trading range for the day is 222.4-249.8.

Natural gas prices pulled back as traders took profits following a dramatic rally spurred by expectations of colder weather.

The U. S. EIA reported that natural gas stockpiles drained by 50 billion cubic feet last week, bringing total natural-gas stockpiles to 3.995 trillion cubic

After an unusually warm autumn, new forecasts show colder temperatures spreading across most of the country starting in the week.