Naturalgas on MCX settled down -2.69% at 198.60 dropped in the line of expectation fell sharply on Monday, hitting the lowest level since November as forecasts continued to call for mostly warmer-than-normal weather in key regions across the U. S. for the rest of the winter. Mild weather across the US continues to weigh on natural gas prices. According to natgasweather. com, while there will be a weather system and associated cold blast over the Northeast today, with also a second system over the Southwest into Texas with areas of rain and snow, the rest of the country will be quite mild for mid-February. As a result, natural gas demand will be lighter than normal overall when considered nationally, even with these weather systems. The issue being there’s just not cold enough air being tapped by US weather systems as frigid Polar air remains bottled up well to the north. It appears as though recent short-lived periods of strength have been merely reactions to a persistent oversold condition. Prices of the heating fuel are down almost 21% since the start of the year as forecasts for warm winter weather weighed on heating demand expectations. Meanwhile, market participants looked ahead to weekly storage data due on Thursday, which is expected to show a draw in a range between 122 and 133bcf in the week ended February 10. That compares with a withdrawal of 152bcf in the preceding week, 163 billion a year earlier and a five-year average drop of 156bcf. Total natural gas in storage currently stands at 2.559tcf, according to the US EIA, 11.3% lower than levels at this time a year ago and 1.8% above the five-year average for this time of year. Technically market is getting support at 197.1 and below same could see a test of 195.5 level, And resistance is now likely to be seen at 201.4, a move above could see prices testing 204.1.

Trading Ideas:

# Naturalgas trading range for the day is 195.5-204.1.

# Natural gas prices sinks below 200 level to 12-week lows amid lack of cold weather

# Prices of the heating fuel are down almost 21% since the start of the year as forecasts for warm winter

# Natural gas markets have been volatile in recent weeks, changing course rapidly in response to shifting outlooks in short-term weather patterns.