Natural gas reversed earlier gains and ended lower as traders weighed forecasts for cold weather in coming weeks against the approach of spring and ample inventories of the fuel. The economic downturn undermined gas demand, particularly from industry.

High levels of gas in storage have helped ease concerns over short-lived demand spikes. Natural Gas yesterday we have seen that market has moved -0.58%.

Market has opened at 259.4 & made a low of 255.6 versus the day high of 266.7. The total volume for the day was at 24677 lots and the open interest was at 5329.

Now support for the Natural Gas is seen at 252.6 and below could see a test of 248.6. Resistance is now likely to be seen at 263.7, a move above could see prices testing 270.8.

Trading Ideas:

Natural Gas trading range is 248.6-270.8.
Natural gas ended lower as traders weighed forecasts for cold weather in coming weeks
Now resistance is at 256.60 above this a rally till 260-262 can be seen.
The economic downturn undermined gas demand, particularly from industry.
BUY NAT. GAS FEB AT 250 SL 247 TGT 253.80-256.50-258.MCX

Courtesy: Kedia Commodities

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