Naturalgas settled up 2.01% at 258.50 rallied to a six-month high, as updated weather forecasting models pointed to freezing temperatures across most parts of the US. Updated weather forecasting models called for severe cold weather across most parts of the U. S. during the next three-to-five days, with continued cold across most of the nation expected in the next six- to-ten days. Bullish speculators are betting that colder weather will increase demand for the heating fuel. The heating season from November through March is the peak demand period for U. S. gas consumption. Meanwhile, U. S. supply levels remained in focus. Total U. S. natural gas storage stood at 3.614tcf as last week, more than 5% below last year's unusually high level and nearly 3% below the five-year average for this time of year. Early estimates for next week's storage data range from a draw of 75bcf to 86bcf, compared to a drop of 8bcf during the same week a year earlier. The five-year average change for the week is a decline of 76bcf. Forecasters at MDA said warm weather in the Midwest and East over the next five days is expected to yield to blast of cold air that will dramatically reverse current conditions. In Chicago, average temperatures are expected to be 14.5 degrees above normal on Wednesday, but will drop to 15.5 degrees below normal averages on Saturday. Similar forecasts hold through the northeast. Boston average temperatures will swing from 9.5 degrees above normal on Thursday to 8 degrees below normal on Sunday and hover in that area for much of next week. Technically market is getting support at 255.6 and below same could see a test of 252.6 level, And resistance is now likely to be seen at 260.3, a move above could see prices testing 262.

Trading Ideas:

Naturalgas trading range for the day is 252.6-262.

Natural gas rose after updated weather forecasting models continued to call for below-normal temperatures to hover in the coming week.

Total U. S. natural gas storage stood at 3.614 trillion cubic feet as last week, more than 5% below last year's unusually high level

Updated weather forecasting models called for severe cold weather across most parts of the U. S. during the next three-to-five days