Mentha Oil market under long liquidation; Resistance seen at 1537.5
Aluminium market under fresh buying; Support seen at 138.3
Nickel market under short covering; Support seen at 918
MCX Zinc likely to trade between 169.1-187.5 levels
MCX Copper likely to trade in a range between 411.6-426
Technically Natural gas market is under fresh selling as market has witnessed gain in open interest by 5.09% to settled at 4334 while prices down 0.7 rupees.
Now Natural Gas is getting support at 186.3 and below same could see a test of 185.4 level, And resistance is now likely to be seen at 188.6, a move above could see prices testing 190.
Natural gas on MCX settled down -0.37% at 187.20 continued to trend lower ahead of Thursday’s inventory report from the Department of Energy. Consensus for Thursday’s report is a build of 62 Bcf with a range of 54 Bcf to 72 Bcf.
Natural gas inventories are below the 5-year average and close to the lower end of the 5-year average range. The trajectory of builds in stockpiles is flat. Prices are trending lower due to cooler than normal weather which is forecast to cover most of the United States for the next 8-14 days according to the National Oceanic Atmospheric Administration.
The United States continues to build toward increasing natural gas exports, but the lack of a NAFTA agreement is hurting exports. Meanwhile a cool front has brought cooling through the Midwest and east-central US with highs dropping into the 70s to lower 80s the next few days for lighter demand.
Hot high pressure will dominate the rest of the country with highs mainly in the 90s to 110F, hottest from California to Texas for strong regional demand. Warming will briefly push into the East Fri-Sat, although with the next weather system already arriving into the Midwest. Overall, demand will ease to MODERATE the next few days then back to HIGH Fri-Sun.
Overall, demand will ease to moderate the next few days then back to high on Friday and Saturday.
–Natural gas trading range for the day is 185.4-190.
–Natural gas slipped as the market focused more on forecasts for less hot weather in much of the country over the next two weeks.
–In recent months, the biggest factor affecting the U.S. 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 80.7 billion cubic feet per day (bcfd) over the past 30 days.
Courtesy: Kedia Commodities