MCX Zinc under long liquidation; Support seen at 185
MCX Nickel likely to move in a range of 952.9-999.5
MCX Mentha Oil under fresh buying; Resistance seen at 1363.6
MCX Aluminium under fresh buying; Support seen at 143
MCX Crude Oil may trade in a range between 4942-5206
Technically Natural Gas market is getting support at 194.8 and below same could see a test of 193.2 levels and resistance is now likely to be seen at 198.5, a move above could see prices testing 200.6.
Natural Gas on MCX settled up 0.15% at 196.50 gained as support seen from rupee weakness while Nymex natural gas prices continued to trend lower despite warmer than normal weather that is forecast to cover most of the United States for the next 8-14 days.
It also appears that the weather will be unseasonably hot over the next week to 10-days which should boost cooling demand over the next 2-weeks. Despite the forecast for warmer weather as inventories that continue to grow slower than expected, prices are facing headwinds.
The EIA will release its next inventory report on Friday July 6, one day late due to the July 4 holiday. Hot high pressure will dominate most of the country today with highs of upper 80s to 100s for strong demand. With highs of 90s from Chicago to NYC today and across most of the east-central and southern US, demand will be quite strong.
However, a weak system will provide cooling across the East Friday through the weekend as highs drop into the 70s and 80s but then warming again back into the 80s and 90s next week. Overall, demand will be VERY HIGH today, easing this weekend, then increasing again next week back to HIGH.
Traders are now eyeing on the reported which shows net injections into storage are lower than the median of the range of market expectations. According to the EIA survey of natural gas analysts, estimates of the weekly net change from working natural gas storage ranged from net injections of 58 Bcf to 77 Bcf, with a median estimate of 71 Bcf.
Trading Ideas:
–Natural Gas trading range for the day is 193.2-200.6.
–Natural gas prices continued to trend lower despite warmer than normal weather that is forecast to cover most of the US for the next 8-14 days.
–Despite the forecast for warmer weather as inventories that continue to grow slower than expected, prices are facing headwinds.
–The EIA will release its next inventory report on Friday July 6, one day late due to the July 4 holiday.
Courtesy: Kedia Commodities
Source: Commodityonline.com
