Naturalgas settled down -0.43% at 253.40 overall traded in the range while Nymex Natural gas rallied to a six-month high on Friday, before turning modestly lower as investors cashed out of the market to lock in gains. Prices remained supported as updated weather forecasting models continued to point to freezing temperatures across most parts of the U.S. On the week, January natural gas prices rose 3.88%, the fifth consecutive weekly gain, as bullish speculators bet 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. 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 6-10 days. Prices rallied sharply on Thursday after the Energy Information Administration said that natural gas storage in the U.S. fell by 162bcf last week, outstripping expectations for a withdrawal of 138bcf. Inventories fell by 62bcf in the same week a year earlier, while the five-year average change for the week is a decline of 41bcf. 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 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. Now Naturalgas is getting support at 251.1 and below same could see a test of 248.9 level, And resistance is now likely to be seen at 257.1, a move above could see prices testing 260.9.

Trading Ideas:

Naturalgas trading range for the day is 248.9-260.9.

Natural gas prices settled down while outlook remain firm after cold weather blanketed the US as temperatures drop the demand for natural gas.

Cold weather gripping much of the nation will encompass more of the heavily populated eastern U.S. in the coming days.

Early withdrawal estimates for next week's storage report range from 75 bcf to 86 bcf.