6.7 C
New York
Wednesday, March 22, 2023

Natural Gas market is under fresh selling; Support seen at 182.3

MCX Nickel under short covering; Resistance seen at 881.2

MCX Aluminium under short covering; Support seen at 130.4

MCX Mentha Oil under fresh buying; Resistance seen at 1651.8

Crude Oil market under fresh buying; Support sen at 3786

NCDEX Chana under long liquidation

Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 9.71% to settled at 6697 while prices down 4.1 rupees;

Now MCX Natural Gas is getting support at 182.3 and below same could see a test of 179.3 levels and resistance is now likely to be seen at 188, a move above could see prices testing 190.7.

Natural Gas on MCX settled down -2.16% at 185.30 sharply lower in the line of expectation as investors price in another change in the weather forecast for later in the month. The steep break puts the market in a position to challenge last week’s low.

According to Natural Gas Intelligence, the American weather model is supportive, but the European model indicates milder temperatures ahead. NatGasWeather is saying for February 13-19, “A fast moving weather system will bring rain, snow and ice across the East today, followed by a milder break late in the week.

The West will be cool to cold and unsettled. The southern US will be mild to warm with highs of 60s to 80s, although cooling Friday-Saturday. This week-end and next week will be quite chilly as cold air sweeps across much of the country with lows of -10s to 20s North and 20s to 40s over the South.

Overall, national demand will be moderate through Thursday, then high Friday through next week.” This week’s U.S. Energy Information Administration’s weekly storage report is expected to show a draw of 79 Bcf for the week-ending February 8. Wednesday’s early price action indicates the market is still bearish.

The price action indicates that traders are favoring the milder European model at this time. This model is calling for milder weather February 23-27.

Trading Ideas:
–Natural Gas trading range for the day is 179.3-190.7.
–Natural gas dropped on forecasts for less severe weather and lower heating demand next week than previously expected.
–Market was more focused on expected big storage injections in the spring and summer with production near record levels and growing
–Stockpiles are currently about 18 percent below normal levels for this time of year and at their lowest level since 2014.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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