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Monday, July 4, 2022

MCX Natural Gas under fresh selling; Support seen at 189.5

MCX Nickel likely to move in a range of 910.2-942.8

MCX Zinc under short covering; Support seen at 176.9

MCX Copper may move in a range of 411.9-425.7

MCX Crude Oil under fresh buying; Resistance seen at 4754

MCX Silver under short covering; Support seen at 38157

Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 2.37% to settled at 3156.

Now MCX Natural Gas is getting support at 189.5 and below same could see a test of 188.8 level, And resistance is now likely to be seen at 191.3, a move above could see prices testing 192.4.

Natural gas prices traded in range as heat waves driving up power demand in California and Texas offset forecasts for less hot weather elsewhere in the country.

In recent months, the biggest factor affecting the U.S. gas market has been speculation on whether production, which is at record levels, would be enough to cut the vast storage deficit and boost stockpiles to near-normal levels before the winter.

According to the U.S. Energy Information Administration (EIA), domestic supplies of natural gas rose by 46 billion cubic feet for the week-ended July 13.

Traders were forecasting a build of about 59 billion cubic feet, while the average over the last five years for the same week was a rise of 62 billion. Total stocks now stand at 2.249 trillion cubic feet, down 710 billion cubic feet from a year ago, and 535 billion below the five-year average, the government said.

Production in the Lower 48 U.S. states averaged a record high 80.8 billion cubic feet per day (bcfd) over the past 30 days. On a daily basis, however, output edged up to 80.4 bcfd from 80.0 bcfd, which is still well below the all-time daily high of 81.4 bcfd on July 5.

Meteorologists forecast temperatures, which have been higher than normal since the start of June, would remain at above-normal levels through early August.

Trading Ideas:
–Natural Gas trading range for the day is 188.8-192.4.
–Natural Gas prices traded in range as heat waves driving up power demand in California and Texas offset forecasts for less hot weather elsewhere in the country.
–Meteorologists forecast temperatures, which have been higher than normal since the start of June, would remain at above-normal levels through early August.
In recent months, the biggest factor affecting the U.S. gas market has been speculation on whether production, which is at record levels.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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