MCX Copper likely to move in a range of 433.2-442
MCX Crude Oil under long liquidation; Support seen at 5032
MCX Silver likely to move in a range of 37093-37473
MCX Nickel under short covering; Resistance seen at 905.3
Technically Natural Gas market is getting support at 209.6 and below same could see a test of 205.1 level, And resistance is now likely to be seen at 216.7, a move above could see prices testing 219.3.
Natural Gas on MCX settled up 1.9% at 214 prices surged higher and are breaking out, as colder than expected weather is expected to cover most of the United States over the next 8-14 days. Traders reacted positively to the in line build in natural gas inventories reported on Thursday by the Energy Information Administration.
There is very little activity in the Atlantic or the Caribbean with one disturbance in the South Atlantic which the National Oceanic Atmospheric Administration believe only has a 20% chance of becoming a cyclone.
Inventories are below the 5-year average range and prices are currently 5% below the 5-year average price. The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stockpiles increased by 86 billion cubic feet for the week ending September 14.
Market were expecting a storage injection of around 86 billion cubic feet. The five-year average for the week is an injection of 76 billion cubic feet, and last year’s storage increase for the week totaled 96 billion cubic feet.
Natural gas inventories rose by 63 billion cubic feet in the week ending September 7. Natural gas futures for October delivery traded down about a penny in advance of the EIA’s report, at around $2.90 per million BTUs, and remained virtually unchanged shortly after the report was released.
–Naturalgas trading range for the day is 205.1-219.3.
–Natural gas prices gained as colder than expected weather is expected to cover most of the United States over the next 8-14 days.
–The Energy Information Administration said utilities added a bigger-than-normal 86 billion cubic feet (bcf) of gas into storage during that week.
–The increase for the week ended Sept. 14 boosted stockpiles to 2.722 tcf, leaving inventories 17.7 percent below the five-year average.
Courtesy: Kedia Commodities