0 C
New York
Thursday, December 9, 2021

Natural Gas market under fresh selling; Support seen at 193.2

MCX Zinc under fresh selling; Support seen at 183.3

MCX Nickel likely to move in a range of 950.4-982.4 levels

MCX Aluminium likely to move in a range of 141.2-148.2

MCX Mentha Oil under short covering; Support seen at 1411.6

Short covering seen in MCX Cotton

Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 32.25% to settled at 4158 while prices down 2.2 rupees.

Now Natural Gas is getting support at 193.2 and below same could see a test of 192 levels and resistance is now likely to be seen at 196.5, a move above could see prices testing 198.6.

Natural Gas on MCX settled down 1.12% at 194.50 on fresh selling while prices are battling between concerns of lower than normal storage and the lingering hot weather along with complacency that current production levels will eventually overtake any shortages before the winter.

While Hot high pressure will build back across the eastern US the next few days with highs of upper 80s to 90s returning to Chicago to NYC. The rest of the country remains very warm to hot with highs of upper 80s to 100s, hottest over the California, the Southwest, and Texas.

A weather system with showers and cooling will sweep across the Great Lakes and Northeast Thursday and Friday, easing national demand from high to moderate. However, hot high pressure will return across the North & East next weekend to again dominate most of the country.

Overall, demand will be HIGH. Last week on Friday, the U.S. Energy Information Administration reported that U.S. supplies of natural gas rose by 78bcf for the week-ended June 29.

This was slightly above the estimate of 75 Bcf. Total stocks now stand at 2.152tcf, down 717 Bcf from a year ago, and 493 Bcf below the five-year average, the EIA said. Last year, total stocks stood at 2.869 Tcf.

 The five-year average is at 2.645 Tcf. The latest production figures show it running more than 7 Bcf/d higher year/year.

Trading Ideas:
–Natural gas trading range for the day is 192-198.6.
–Natural gas dropped to as production hit another record high and forecasts for less hot weather and demand during over the next two weeks than previously expected.
–In recent months, the biggest factor affecting the gas market has been speculation on whether production, which is at record levels.
–Production in the Lower 48 U.S. states averaged a record high 80.4 billion cubic feet per day (bcfd) over the past 30 days.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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