31.4 C
New York
Saturday, May 21, 2022

MCX Natural Gas expected to trade between 187.9-196.7 levels

MCX Zinc expected to trade between 192-205.8 levels

MCX Copper likely to trade between 442.6-449.2 levels

MCX Crude Oil may trade in a range between 3750-4018

MCX Nickel likely to move in a range of 905.9-965.5

MCX Aluminium under short covering; Support seen at 137

Technically market is getting support at 189.9 and below same could see a test of 187.9 levels and resistance is now likely to be seen at 194.3, a move above could see prices testing 196.7.

Natural Gas on MCX settled down -0.26% at 191.90 traded in the range while prices remain under pressure as warmer than expected weather is expected to cover most of the eastern portion of the US. Demand during the last week was strong as the polar vortex moved down through the mid-west.

Supply was also flat allowing for a huge draw in inventories. Current expectations are for a 230 Bcf draw according to estimize. Demand rises, driven by the residential and commercial sector. Total U.S. consumption of natural gas rose by 8% compared with the previous report week, according to the EIA.

In the residential and commercial sectors, consumption increased by 11%, reaching a near-record high of 70.9 Bcf per day on Wednesday, January 30, the second-highest value ever recorded (the highest was 71.6 Bcf per day in January 2014). While supply remains flat.

According to data from the EIA, the average total supply of natural gas remained the same as in the previous report week, averaging 94.0 Bcf per day.

According to NatGasWeather for February 5 to February 11, “Mild conditions will continue across the Ohio Valley and East through Thursday with highs of 40s and 50s. It will be exceptionally comfortable across the southern U.S. and Mid-Atlantic Coast with highs of 70s and 80s. The West will be stormy but only slightly cool. The coldest air will be confined to the Northern Plains where weather systems will trace through with highs of -0s to 20s, including rain and snow at times advancing across the rest of the Midwest. Now traders were also looking ahead to crude inventory data.”

Trading Ideas:
–Natural gas trading range for the day is 187.9-196.7.
–Naturalgas on MCX settled down -0.26% at 191.90 as prices are falling as the outlook is not nearly as bullish.
–Sellers continue to press prices lower in response to confusion over short-term weather models and lower cash market prices.
–The week began with total stocks at 2.197tcf, down 14bcf from a year ago, but 328 billion below the five-year average, according to the US EIA.

Courtesy: Kedia Commodities

Source: Commodityonline.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles