33 C
New York
Saturday, May 21, 2022

Natural Gas market under fresh buying; Support seen at 232

MCX Zinc may trade between 194.3-200.5 levels

MCX Copper likely to trade in a range between 437.8-455.2

MCX Nickel under fresh selling; Support seen at 882.3

MCX Aluminium under fresh selling; Resistance seen at 145.6

MCX Menthol Oil under fresh buying; Support seen at 1787.3

Technically Natural Gas market is under fresh buying as market has witnessed gain in open interest by 6.11% to settled at 2309 while prices up 3.2 rupees.

Now MCX Natural Gas is getting support at 232 and below same could see a test of 228.7 levels and resistance is now likely to be seen at 237.6, a move above could see prices testing 239.9.

Natural Gas on MCX settled up 1.38% at 235.40 rebounded but remain range bound following Thursday’s higher than expected build in inventories.

Despite the uptick, inventories remain well below the 5-year average, just 1-week before the withdrawal season begins. Generally inventories begin to come out of storage on November 1, unless the weather is warmer than normal.

The weather is expected to be slightly below normal for most of the mid-west for the next 2-weeks according to the National Oceanic Atmospheric Administration. A stronger than expected durable goods orders should help industrial natural gas demand remain buoyed.

The Energy Information Administration reported that working gas in storage was 3,095 Bcf as of Friday, October 19, 2018. This represents a net increase of 58 Bcf from the previous week. Expectations were for a 52 Bcf Increase. Stocks were 606 Bcf less than last year at this time and 624 Bcf below the five-year average of 3,719 Bcf.

At 3,095 Bcf, total working gas is below the five-year historical range. Cool conditions will linger across Midwest to Northeast the next few days with highs of 40s and 50s, while another reinforcing cold shot to follow this weekend into early next week. The West will be warm with highs of 60s to 80s due to high pressure.         

Trading Ideas:
–Natural gas trading range for the day is 228.7-239.9.
–Natural gas rose after a U.S. government reported a smaller-than-usual weekly storage build and on forecasts for cooler weather over the next two weeks.
–The US EIA said utilities added 63 billion cubic feet (bcf) of gas into storage during the week ended Oct. 19.
–The increase for the week ended Oct. 19 boosted stockpiles to 3.095 tcf, leaving inventories 16.8 percent below the five-year average of 3.719 tcf.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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