Natural gas yesterday traded with the negative node and settled -1.05% down at 200.7 after government storage data showed a smaller-than-expected drawdown from winter inventories. In addition, mainly weaker cash prices and forecasts for moderating weather in longer-term outlooks added weight to the downside, despite continued near-term cold in consuming regions of the nation. In yesterday's trading session natural gas has touched the low of 199 after opening at 202.6, and finally settled at 200.7. For today's session market is looking to take support at 198.6, a break below could see a test of 196.4 and where as resistance is now likely to be seen at 203.3, a move above could see prices testing 205.8.

Trading Ideas:

Natural Gas trading range is 196.4-205.8.

Gas fell after government storage data showed a smaller-than-expected drawdown from winter inventories

Temperatures in key gas consuming cities were still seen below normal for the next six days.

The stockpile decrease was bigger than the five-year average withdrawal for the week of 109bcf

SELL NAT.GAS JAN @ 203 SL 205.20 TGT 201.50-199.50-198.MCX