Naturalgas yesterday settled down -0.51% at 213.70 fluctuated between small gains and losses near the lowest level in nearly four months on Monday, as market players focused on near-term weather forecasts to gauge the strength of demand for the fuel. The commodity is now down nearly 20% from a recent peak of USD4.439 per million British thermal units hit on May 1, meeting the definition of a bear market. Weather forecasting models pointed to warmer than normal temperatures across the western part of the US over the next five days, while mild weather was expected across most of the Northeastern states. 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 95bcf, above market expectations for an increase of 88 billion. Inventories rose by 58bcf in the same week a year earlier, while the five-year average change for the week is a rise of 79bcf. Total US natural gas storage stood 2.533 trillion cubic feet as of last week, just 1.2% below the five-year average for this time of year. Technically market is under fresh selling as market has witnessed gain in open interest by 4.35% to settled at 16516 while prices down -1.1 rupee, now Naturalgas is getting support at 211.03 and below same could see a test of 208.90 level, And resistance is now likely to be seen at 215.90, a move above could see prices testing 218.10.

Trading Ideas:

Naturalgas trading range for the day is 209-218.2.

Natural gas dropped as market players focused on near-term weather forecasts to gauge the strength of demand for the fuel.

Rising stockpile data released last week allowed for choppy trading.

Total U. S. natural gas storage stood at 2.533 trillion cubic feet as of last week.