Naturalgas recovered from the day's low and settled up by 2.68% at 310.70, earlier in the day prices fell after updated weather-forecasting models continued to call for a thawing trend across the eastern U. S., though losses were limited on predictions for a fresh shot of cold air to return and hike demand for household heating. Repeated blasts of arctic air that shot across the U. S. in January will give way to milder temperatures during the first two weeks of February, according to updated forecasting models. Milder wintertime temperatures in the U. S. often prompt homes to scale back on their heating, which lowers demand for natural gas in the country's thermal power plants. The second half of February should see a return of below-normal temperatures across parts of the eastern U. S., which cubed the commodity's losses, though cold snaps won't be as severe as those in January. Meanwhile, U. S. supply levels also remained in focus. Total U. S. natural gas storage fell by 230 billion cubic feet last week to 2.193 trillion cubic feet, approximately 17% below the five-year average for this time of year. Natural-gas inventories have fallen by nearly 40% since November as frigid winter temperatures in the U. S. led households to burn a higher than normal amount of the fuel in furnaces to heat their homes. Data from the CFTC released Friday showed that hedge funds and money managers increased their bullish bets in natural gas futures in the week ending January 28. Technically market is getting support at 302.2 and below same could see a test of 293.6 level, And resistance is now likely to be seen at 315.8, a move above could see prices testing 320.8.

Trading Ideas:

Naturalgas trading range for the day is 293.6-320.8.

Natural gas prices ended with gains on predictions for a fresh shot of cold air to return and hike demand for household heating.

Updated weather forecasting models pointed to moderating temperatures that should curb demand for the heating fuel.

Bearish speculators are betting that the milder weather will decrease demand for the heating fuel.