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New York
Wednesday, August 17, 2022

MCX Natural Gas may trade between 198.5-207.5 levels

MCX Nickel may trade between 881.3-914.3 levels

MCX Aluminium likely to move in a range of 144.3-154.5

MCX Mentha Oil may trade between 1776.1-1832.5 levels

MCX Cotton under fresh buying; Support seen at 23010

MCX Cardamom under fresh buying; Resistance seen at 1478.4

Technically MCX Natural Gas is getting support at 201.4 and below same could see a test of 198.5 levels and resistance is now likely to be seen at 205.9, a move above could see prices testing 207.5.

Natural Gas on MCX settled up 1.74% at 204.20 as prices rebounded on fresh buying after attempting to push below trend line support of 200, and surged nearly 1% into the close of the trading session.

While support is flat demand appears to have dipped in the latest week with most of the losses coming in the electrical power space. A weather system with showers and thunderstorms will track across the Ohio Valley and Northeast Monday, but then warming the rest of the week.

The South will see a slow moving weak weather system produce showers, while a cooler system will impact the Northwest. Temperatures remain hot over the Southwest and Southeast with upper 80s to 90s, 100s over SW deserts.

As the week progresses, warm high pressure will strengthen over most of the country with 80s to near 90F becoming widespread besides the Northwest. Hurricane Florence is likely to impact the Carolina Coast late in the week with heavy rain and dangerous winds. Overall, national demand will be Moderate.

According to data from the EIA, the average total supply of natural gas remained the same as in the previous report week, averaging 87.9 Bcf per day. Dry natural gas production remained constant week over week.

Average net imports from Canada decreased by 7% from last week. Overall demand is down with decreases in the electric power, residential/commercial sectors. Total U.S. consumption of natural gas fell by 2% compared with the previous report week, according to data from the EIA.

Trading Ideas:
–Natural Gas trading range for the day is 198.5-207.5.
–Natural gas ended higher after hitting a more than one-month low earlier in the session, supported by short-covering and expectations of higher demand.
–According to data from the EIA, the average total supply of natural gas remained the same as in the previous report week, averaging 87.9 Bcf per day.
–Total U.S. consumption of natural gas fell by 2% compared with the previous report week, according to data from the EIA.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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