Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 33.99% to settled at 4072 while prices up 27.1 rupees.
Now MCX Natural Gas is getting support at 379.4 and below same could see a test of 364.1 levels, and resistance is now likely to be seen at 405.3, a move above could see prices testing 415.9.
Natural Gas yesterday settled up by 7.37% at 394.7 on forecasts for colder weather and higher heating demand next week than previously expected and expectations that soaring prices in Europe will keep demand for U.S. liquefied natural gas exports strong.
Gas prices in Europe jumped over 8% for a second day in a row on worries Russian gas giant Gazprom PAO will not deliver enough fuel this winter after Germany’s energy regulator suspended the approval process for Gazprom’s Nord Stream 2 gas pipe from Russia to Germany.
Global gas prices hit record highs in October as utilities around the world scrambled for LNG cargoes to replenish extremely low stockpiles in Europe and meet insatiable demand in Asia, where energy shortfalls have caused power blackouts in China.
Speculators cut their net long positions on the New York Mercantile and Intercontinental Exchanges last week for a sixth week to their lowest since June 2020, according to data from the Commodity Futures Trading Commission (CFTC).
Data provider Refinitiv said output in the U.S. Lower 48 states averaged 96.0 billion cubic feet per day (bcfd) so far in November, up from 94.1 bcfd in October and a monthly record of 95.4 bcfd in November 2019.
Trading Ideas:
–Natural Gas trading range for the day is 364.1-415.9.
–Natural Gas rose on forecasts for colder weather and higher heating demand next week than previously expected.
–Gas prices in Europe jumped over 8% for a second day in a row on worries Russian gas giant Gazprom PAO will not deliver enough fuel this winter.
–Speculators cut their net long positions for a sixth week to their lowest since June 2020.
Courtesy: Kedia Commodities
Source: Comodity Online
