Naturalgas yesterday settled down -2.25% at 221.40 down for the fourth consecutive session, falling to the lowest level since mid-March amid expectations for reduced demand after forecasts showed mild weather in the Northeastern US states next week. Weather forecasting models continued to point to below-normal temperatures for the key Northeast region for the next two weeks. Industry weather group MDA Weather Services said it expected near seasonal or below seasonal temperatures to spread across the eastern half of the nation during the next six-to-15-days. The US Northeast is a key gas-cooling area. Mild summer temperatures reduce the need for gas-fired electricity to cool homes, dampening demand for natural gas. Meanwhile, sentiment on the commodity remained downbeat following last week's bearish US supply report, which showed that natural gas storage in the US rose by a more-than-expected 91bcf. Total US natural gas storage stood 2.438tcf as of last week, 1.9% below the five-year average for this time of year. Early injection estimates for this week's storage data range from 75bcf to 95bcf, compared to a 58bcf increase during the same week a year earlier. The five-year average for the week is a build of 79bcf. Technically market is under fresh selling as market has witnessed gain in open interest by 40.04% to settled at 17144 while prices down -5.1 rupee, now Naturalgas is getting support at 219.40 and below same could see a test of 217.50 level, And resistance is now likely to be seen at 224.80, a move above could see prices testing 228.03.

Trading Ideas:

Naturalgas trading range for the day is 217.5-228.3.

Natural gas dropped amid expectations for reduced demand after forecasts showed mild weather in the Northeastern US states next week.

Weather forecasting models continued to point to below-normal temperatures for the key Northeast region for the next two weeks.

Sentiment remained downbeat following last week's bearish US supply report, which showed that natural gas storage rose by 91bcf.