Natural gas on MCX settled down -0.72% at 220.20 while prices rebounded as support seen on low-level buying as prices were in oversold condition also support seen on the speculation that upcoming cold weather. According to natgasweather. com, a colder system will sweep across the central and eastern US late this week, ending the current mild spell as natural gas demand surges to near or slightly stronger than normal levels due to much of the US finally dropping below freezing besides the far southern US. Natural gas prices struggled near a two-week low on Monday, as forecasts showing warm weather receding in key regions in the U. S. during the next few weeks dampened demand for the heating fuel. Prices of the heating fuel posted a weekly loss of more than 6% last week on forecasts for warmer winter weather. 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. Meanwhile, market participants looked ahead to weekly storage data due on Thursday, which is expected to show a draw in a range between 105 and 117bcf in the week ended January 20. Total natural gas in storage currently stands at 2.917 trillion cubic feet, according to the U. S. EIA, 12.9% lower than levels at this time a year ago and around 2.6% below the five-year average for this time of year. Technically market is getting support at 216.3 and below same could see a test of 212.4 level, And resistance is now likely to be seen at 222.6, a move above could see prices testing 225.

Trading Ideas:

# Naturalgas trading range for the day is 212.4-225.

# Natural gas recovered from the day's low on low-level buying and on the speculation that upcoming cold weather.

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

# Traders are looking ahead to weekly storage data due on Thursday, which is expected to show a draw in a range between 105 and 117bcf