Naturalgas on MCX settled down -2.63% at 225.50 in the line of expectation as forecasts for warmer winter weather continue to weigh on natural gas. Forecasts had called for colder weather, thereby driving last week’s advance. However, forecasts have turned warmer, particularly over the remainder of January, resulting in a reduction in demand for natural gas. Prices have been volatile in recent weeks due to changing weather forecasts. Weather models initially predicted colder temperatures throughout most parts of the U.S. during the period. Natural gas markets have been volatile in recent weeks, changing course rapidly in response to shifting outlooks in short-term weather patterns. Prices typically rise during the winter as colder weather sparks indoor-heating demand. About half of U.S. homes use natural gas for heating. Now traders are looking ahead to weekly storage data due on Thursday, which is expected to show a draw in a range between 220 and 230 billion cubic feet in the week ended January 13. That compares with a withdrawal of 151 billion cubic feet in the preceding week, 178 billion a year earlier and a five-year average drop of 170 billion cubic feet. Total natural gas in storage currently stands at 3.160 trillion cubic feet, according to the U.S. Energy Information Administration, 10.3% lower than levels at this time a year ago and around 0.1% below the five-year average for this time of year. Technically market is under fresh selling and getting support at 221.8 and below same could see a test of 218.2 level, And resistance is now likely to be seen at 231, a move above could see prices testing 236.6.

Trading Ideas:

Naturalgas trading range for the day is 218.2-236.6.

Natural Gas dropped once again to test 226 level as forecasts for warmer winter weather continue to weigh on natural gas.

Weather models initially predicted colder temperatures throughout most parts of the U.S. during the period.

Today weekly storage data is due which is expected to show a draw in a range between 220 and 230bcf in the week ended January 13.