16.5 C
New York
Thursday, October 21, 2021

MCX Natural Gas may trade in a range between 196.1-204.3

MCX Zinc likely to trade in a range between 194.4-201.4

MCX Copper expected to trade between 459.1-472.3 levels

Crude Oil market under long liquidation; Support seen at 4020

MCX Silver may trade in a range between 39401-40781

Gold market under long liquidation; Support seen at 32837

Technically market is getting support at 197.9 and below same could see a test of 196.1 levels and resistance is now likely to be seen at 202, a move above could see prices testing 204.3.

Natural Gas on MCX settled up 0.1% at 199.70 edged higher on Thursday following an inline inventory report from the Department of Energy. Prices are within the 5-year average range, but the lower end.

The 5-year average price is 3.04, nearly 20 cents lower than current levels. Production remains robust. The weather is expected to be colder than normal over the next 2-weeks. The 8-14 day forecast is not as cold as the 6-10 day forecast.

Stronger than expected manufacturing data could give demand a boost. Natural gas inventories declined in line with expectations. According to the EIA, working gas in storage was 1,539 Bcf as of Friday, February 22, 2019. This represents a net decrease of 166 Bcf from the previous week. Expectations were for a 162 Bcf decline.

Stocks were 154 Bcf less than last year at this time and 424 Bcf below the five-year average of 1,963 Bcf. At 1,539 Bcf, total working gas is within the five-year historical range. The 5-year average price for natural gas is 3.04, 7% below current levels.

Mostly mild conditions for the Ohio Valley and East the next few days with highs reaching the 40s and 50s. The West will be cool and stormy as weather systems bring rain and snow. Finally, frigid cold across the Plains will spread south and east this weekend through next week w/lows of -20s to 20s, 20s and 30s into Texas portions of the southern US for very strong national demand.        

Trading Ideas:
–Natural gas trading range for the day is 196.1-204.3.
–Natural gas futures were little changed following the release of a government report showing a slightly smaller-than-expected storage draw last week.
–That lack of price volatility has been in place for much of February as temperatures moderated and the high production could meet any increase in demand.
–The U.S. EIA said utilities pulled a much bigger than normal 166 billion cubic feet (bcf) of gas from inventories during the colder than usual.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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