Naturalgas on MCX settled up 2.95% at 185.00 rebounded on short covering as support seen after normal to above normal weather is forecast to cover most of the East coast for the next 8-14 days according to the National Oceanic Atmospheric Administration. The National Oceanic Atmospheric Administration (NOAA) released its update for heating degree days (HDDs). The natural gas-weighted HDDs for the heating season through February 25th, NOAA estimates that HDDs are 19% below normal, and 3% less than last year. While still sentiments remain weak with production, likely to remain robust and increase in March, prices will remain under pressure. Meanwhile, market participants looked ahead to weekly storage data due on Thursday, which is expected to show a draw in a range between 1 and 8bcf in the week ended February 24. That compares with a withdrawal of 89bcf in the preceding week, 48 billion a year earlier and a five-year average drop of 132bcf. Total natural gas in storage currently stands at 2.356 trillion cubic feet, according to the US EIA, 2.5% lower than levels at this time a year ago and 6.6% above the five-year average for this time of year. Without significant demand for natural gas, inventories could stay near record levels and may even continue to pull prices even lower. Technically market is under short covering as market has witnessed drop in open interest by -9.54% to settled at 9761 while prices up 5.3 rupees, now Naturalgas is getting support at 179.6 and below same could see a test of 174.2 level, And resistance is now likely to be seen at 188.5, a move above could see prices testing 192.

Trading Ideas:

# Naturalgas trading range for the day is 174.2-192.

# Natural gas gained nearly 3% amid forecasts for warmer weather in key regions across the U. S. during the next few weeks.

# Sentiments remain weak with production, likely to remain robust and increase in March, prices will remain under pressure.

# Prices touched a three-and-a-half-month low lastweek, as forecasts called for mostly warmer-than-normal weather.