2.3 C
New York
Wednesday, December 8, 2021

MCX Natural Gas may trade in a range between 198.3-203.5

MCX Copper likely to trade between 414-429.6 levels

MCX Crude Oil may trade in a range between 4753-4895

Silver market under long liquidation; Support seen at 36965

Gold market under short covering; Support seen at 29946

MCX Cotton under short covering

Technically market is getting support at 199.6 and below same could see a test of 198.3 levels and resistance is now likely to be seen at 202.2, a move above could see prices testing 203.5.

Natural Gas on MCX settled down -0.54% at 200.80 dropped in the line of expectation on fresh selling for a 3rd consecutive trading session. Prices are giving back some of the gains experienced last week. This comes despite low inventory levels that have a flat trajectory and have a lot of stockpiles to make up prior to the withdrawal season.

The weather is expected to be warmer than normal over the next 8-14 days which should drive up cooling demand at the tail end of the summer cooling season.  Production continues to remain buoyed which is keeping a lid on prices. There is no tropical cyclone weather expected in the Atlantic or Caribbean for the next 48-hours.

Meanwhile hot high pressure will dominate the southern and eastern halves of the country with highs of upper 80s to 90s again across the S. Great Lakes, Mid-Atlantic, and Northeast, including highs of mid-90s for Washington D.C. and NYC, driving strong national demand.

Cooler exceptions will be over the N. Rockies/ N. Plains as a cool shot sweeps through. Modest cooling will arrive across the northern US Thu-Fri, easing national demand briefly, but then will again become strong as hot high pressure returns this weekend.

Overall demand will be HIGH besides Thu-Fri. Natural gas inventories are expected to rise by 57 BCF according to estimize. This would put inventories on an upward trajectory which is expected at this time of year. Demand last week was softer than expected which could allow inventories to rise.

Trading Ideas:
–Natural gas trading range for the day is 198.3-203.5.
–Natural gas fell on expectations of a decline in cooling demand and sustained record production.
–This comes despite low inventory levels that have a flat trajectory and have a lot of stockpiles to make up prior to the withdrawal season.
–The weather is expected to be warmer than normal over the next 8-14 days which should drive up cooling demand at the tail end of the summer cooling season.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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