18.4 C
New York
Tuesday, October 19, 2021

MCX Natural Gas under short covering; Resistance seen at 423.4

Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 9.64% to settled at 3599 while prices up 3.2 rupees.

Now MCX Natural Gas is getting support at 407.9 and below same could see a test of 398.2 levels, and resistance is now likely to be seen at 423.4, a move above could see prices testing 429.2.

Natural Gas yesterday settled up by 0.77% at 417.5 with a decline in output over the past couple of days, forecasts for higher heating use during the next two weeks and a near 8% increase in gas prices in Europe.

Demand for U.S. liquefied natural gas (LNG) exports will remain strong so long as gas prices in Europe and Asia stay much higher than in the United States.

China’s total natural gas imports in September – including both piped and liquefied natural gas – rose to the highest since January this year to 10.62 million tonnes, customs data showed on Wednesday, as companies stocked up ahead of winter.

Germany does not currently see any gas supply shortages, a ministry spokesperson said when asked if the government will take action to fill the country’s storage tanks in response to global price increases.

The country’s gas stores are currently 75% full and filling slowly, the energy ministry spokesperson said, adding that the capacity of German gas storage is higher than that of other countries such as Britain.”For this reason, the amount of gas available in Germany is higher than in some countries that have the tanks filled at 100%,” she said.

Trading Ideas:
–Natural Gas trading range for the day is 398.2-429.2.
–Natural Gas edged up with a decline in output over the past couple of days, forecasts for higher heating use during the next two weeks.
–China Sept natural gas imports highest since Jan – customs.
–Germany sees no gas supply shortages – energy ministry.

Courtesy: Kedia Commodities

Source: Comodity Online

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