MCX Nickel may trade between 955.3-984.5 levels
MCX Aluminium under fresh selling; Support seen at 142.2
MCX Mentha Oil likely to trade in a range of 1430.4-1511.4
Zinc market under fresh selling; Support seen at 178.8
MCX Copper under fresh selling; Support seen at 429.9
Technically Natural gas market is under fresh selling and prices getting support at 190.9 and below same could see a test of 189.7 level, And resistance is now likely to be seen at 194.3, a move above could see prices testing 196.5.
Natural gas on MCX settled down -1.18% at 192.20 on fresh selling despite there is heat in the forecasts, it’s not impressive enough to stop the current price slide. It’s also not enough to offset rising production that is raising hope that the supply deficit may be filled by the start of winter.
Cool weather is expected to move into the mid-west which might reduce cooling demand. Hot high pressure will dominate most of the country the next few days with highs of upper 80s to 90s, hottest from California, to Texas. However, a weather system with showers and cooling will sweep across the Northeast tonight into Friday, easing national demand slightly.
Hot high pressure will return to dominate most of the country this weekend with widespread highs of 80s to 100s for a swing back to strong demand. Overall, demand will be HIGH. The uncertainty in the market at this time is understandable because traders are waiting to see the next 10 to 14 day forecast that will offer more insight into temperatures beyond July 15.
Going into the week-end, the latest forecast was calling for the return of more mild temperatures after mid-month. According to data from the EIA, the average total supply of natural gas rose by 1% compared with the previous report week. Dry natural gas production grew by 1% compared with the previous report week. Average net imports from Canada decreased by 4% from last week.
–Natural Gas trading range for the day is 189.7-196.5.
–Natural gas fell as production remained near a record high and on forecasts for less hot weather and demand next week than previously expected.
–In recent months, the biggest factor affecting the gas market has been speculation on whether production, which is at record levels.
–Cool weather is expected to move into the mid-west which might reduce cooling demand.
Courtesy: Kedia Commodities