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Naturalgas on MCX settled down -3.18% at 225.10 dropped in the line of expectation plunged to a three-week low Tuesday with warmer weather and expectations for soft demand causing a selloff before the holidays. The market is now down in six of seven sessions since it closed at a two-year high Dec. 9. Natural gas has been one of the best performing commodities of the year, but is still dependent on cold weather to drive demand for winter heating.

             Technically market is getting support at 220.5 and below same could see a test of 215.8 level, And resistance is now likely to be seen at 230.5, a move above could see prices testing 235.8.

                 Trading Ideas

• Natural gas trading range for the day is 215.8-235.8.

• Natural gas prices dropped as forecasts for less cold weather and lighter heating demand through the end of the year dragged down prices.

• Updated weather forecasting models predicted warmer temperatures would arrive by the end of December, dampening demand for the heating fuel.

• Total natural gas in storage currently stands at 3.806 trillion cubic feet, according to the US EIA.