0.6 C
New York
Thursday, March 30, 2023

MCX Natural Gas under long liquidation; Support seen at 200.8

MCX Aluminium may trade in a range between 143.8-145.8

Nickel market under fresh selling; Support seen at 929

Zinc market under short covering; Support seen at 177.1

Copper market under short covering; Support seen at 417.1

MCX Crude Oil may trade between 4779-4861 levels

Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 37.27% to settled at 2023 while prices down 2.3 rupees.

Now Natural Gas is getting support at 200.8 and below same could see a test of 199.7 levels and resistance is now likely to be seen at 203.7, a move above could see prices testing 205.5.

Natural Gas on MCX settled down 1.13% at 202 in the line of expectation as concerns over moderating temperatures and rising production continue to weigh on nearby futures contracts as well as the spot market.

According to NatGasWeather.com for the period August 27 to September 3, “Hot high pressure continues to build across the eastern half of the country with highs of upper 80s to 90s returning across the Midwest, Mid-Atlantic, and Northeast.

This includes highs of mid-90s for major Northeast cities such as Washington, D.C. and NYC, pushing national demand to high levels the next several days, aided by hot and humid 90s over the southern US. Cooler exceptions will be over the NW/N, Rockies/Northern Plains as a cool shot sweeps through.

Weak cooling will graze the Midwest Thursday-Friday, easing national demand briefly. Overall demand will be high. On Thursday, the U.S. Energy Information Administration (EIA) announced a storage build of 48 Bcf, bringing total stocks to 2.345 Tcf for the week-ending August 17.

Total stocks are 684 Bcf less than inventories one year ago and 599 Bcf less than the five-year historical average. Nationwide gas stocks are at 2.435 Tcf in the week that ended August 17, a 19.7% deficit to the five-year average of 3.034 Tcf, according to the EIA.

Trading Ideas:
–Natural Gas trading range for the day is 199.7-205.5.
–Natural gas fell weighed down by strong U.S. gas production and expectations of easing demand due to moderating weather forecasts.
–Production in the lower 48 U.S. states averaged a record 82.4 billion cubic feet per day (bcfd) over the past 30 days.
–Net injections are lower than the five-year average for the eighth week in a row, according to the EIA.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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