14.5 C
New York
Monday, December 6, 2021

MCX Natural Gas under long liquidation; Support seen at 229.5

MCX Gold under fresh buying; Support seen at 31380

MCX Silver may trade between 38471-39761 levels

MCX Crude Oil under fresh buying; Resistance seen at 5601

MCX Copper under fresh selling; Resistance seen at 460.2

MCX Zinc under Fresh buying; Support seen at 195

Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 11.31% to settled at 4273 while prices down 1.5 rupees.

Now MCX Natural Gas is getting support at 229.5 and below same could see a test of 226.4 level, And resistance is now likely to be seen at 237.7, a move above could see prices testing 242.8.

Natural Gas on MCX settled down 0.64% at 232.7 as a much bigger-than-expected storage build last week offset upwardly revised forecasts for more demand in coming weeks.

The Energy Information Administration released its report on US natural gas inventories, showing a buildup of 98 billion cubic feet in the week ending September 28, adding to the 46 billion increase in the previous week, while analysts expected only a 47 billion build.

Total stocks are now down to 2.8666 trillion cubic feet from 2.768 trillion in the week ending September 21, which is below the total of the same period in 2017 at 3.502 trillion, while also below the five-year average at 3.473 trillion.

Stockpiles are at their lowest level for this time of year since 2003. Traders noted that drillers have been pulling record amounts of gas out of the ground, which they said was the only thing keeping prices from soaring earlier this week.

Production in the Lower 48 U.S. states averaged a record high 85.3 bcfd over the past 30 days. Output was 85.3 bcfd on Wednesday, down 1.3 percent from the all-time high of 86.4 bcfd on Sept. 24, according to data.

Trading Ideas:
–Natural Gas trading range for the day is 226.4-242.8.
–Natural Gas eased as a much bigger-than-expected storage build last week offset upwardly revised forecasts for more demand in coming weeks.
–The Energy Information Administration released its report on US natural gas inventories, showing a buildup of 98 billion cubic feet.
–Total stocks are now down to 2.8666 trillion cubic feet from 2.768 trillion, which is below the total of the same period in 2017 at 3.502 trillion.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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