11.8 C
New York
Wednesday, May 25, 2022

Natural Gas market under long liquidation; Support seen at 202.2

Aluminium market under fresh buying; Support seen at 141.6

Nickel market under long liquidation; Support seen at 939.8

MCX Cotton under fresh buying; Support seen at 23334

MCX Cardamom under fresh buying; Resistance seen at 1363.5

Zinc market under fresh selling; Support seen at 166.2

Technically Natural gas market is under long liquidation as market has witnessed drop in open interest by 7.72% to settle at 5227.

Now MCX Natural gas is getting support at 202.2 and below same could see a test of 198.6 levels and resistance is now likely to be seen at 207.8, a move above could see prices testing 209.8.

Natural Gas on MCX settled down 0.39% at 205.8 as a steady rise in gas production offset concerns surrounding low inventories in storage, which are at the lowest level in 15 years for this time of year. Production in the Lower 48 U.S. states averaged a record-high 82.0 billion cubic feet per day (bcfd) over the past 30 days.

Daily output rose to an all-time high of about 83.3 bcfd on Aug. 18. Early estimates showed utilities were likely to inject 41 bcf gas into storage in the week of Aug. 17. This compares with increases of 45 bcf in the same week last year and a five-year average build of 52 bcf for the period. If correct, this would be the seventh straight week that injections would be smaller than normal.

The increase would also boost stockpiles to 2.428 tcf, leaving inventories about 20 percent below the five-year average of 3.034 tcf for this time of year, and the lowest for the week since 2003. overall futures volatility has remained relatively low since February, with prices supported by tight supplies but pressured by strong gas output.

The amount of gas in storage is about 20 percent below the five-year (2013-2017) average while production is at record levels. Natural gas speculators in four major NYMEX and ICE markets upped their net long position by 72,782 contracts to 205,206 in the week to Aug. 14, the highest since late June, U.S. Commodity Futures Trading Commission (CFTC) data showed.

Trading Ideas:
–Natural gas trading range for the day is 198.6-209.8.
–Natural gas inched down as investors booked profits but concerns surrounding low inventories in storage kept the losses in check.
–Overall futures volatility has remained relatively low since February, with prices supported by tight supplies but pressured by strong gas output.
–Early estimates showed utilities were likely to inject 41 bcf gas into storage in the week of Aug. 17.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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