Naturalgas settled up 0.25% at 276.80 rose on Monday after updated weather forecasts called for a fresh blast of below-normal temperatures to push across the eastern U. S. in the coming week. Cold air is expected to shoot down over the Midwest midway through the week and trek east, which should send businesses and homes cranking up their heating, thus increasing the demand for natural gas at the country's thermal power generators. In its 8-14 day forecast, Natgasweather. com predicted cold and wintry weather for the Midwest and Northeast, though the West Coast will see mild and drier conditions. Natgasweather. com added high-use eastern U. S. states will continue to draw above-normal natural gas and energy during the time frame, while the central and even the southeastern U. S. should see very cold conditions as well. Meanwhile, U. S. supply levels remained in focus. Total U. S. natural gas storage stood at 3.248 trillion cubic feet as of last week, more than 13% below last year's unusually high level and nearly 7% below the five-year average for this time of year. Early withdrawal estimates for this week's storage data range from 135bcf to 177bcf, compared to a drop of 74bcf during the same week a year earlier. The five-year average change for the week is a decline of 125bcf. Supplies fell by 285bcf last week, the biggest weekly withdrawal on record. Technically market is under short covering as market has witnessed drop in open interest by -13.36% to settled at 11603 while prices up 0.7 rupee, now Naturalgas is getting support at 274.7 and below same could see a test of 272.7 level, And resistance is now likely to be seen at 279.8, a move above could see prices testing 282.9.

Trading Ideas:

Naturalgas trading range for the day is 272.7-282.9.

Natural gas climbed as colder than forecast weather blankets the US increasing residential demand.

Trading could be choppy this week as liquidity dries up with many markets across the globe shut on Wednesday for the Christmas holiday.

Weather in US states will continue to draw above-normal natural gas and energy during the time frame.