Zinc market under fresh selling; Support seen at 174.6
MCX Copper may trade in a range between 416.8-428.4
MCX Copper may trade in a range between 416.8-428.4
Crude Oil market under long liquidation; Support seen at 4714
Silver market under short covering; Support seen at 39164
Technically Natural Gas market is under fresh selling and getting support at 190.5 and below same could see a test of 188.9 levels and resistance is now likely to be seen at 194.2, a move above could see prices testing 196.3.
Natural Gas on MCX settled down -1.49% at 192.20 prices eased lower on Thursday despite a smaller than expected build in natural gas inventories. The mild weather that is expected to cover most of the US for the next 8-14 days has generated headwinds.
Prices slipped nearly 1.49%, forming an inside day which is a lower high and a higher low which reflects indecision. Yesterday the EIA reported that working gas in storage was 2,203 Bcf as of Friday, July 6, 2018. This represents a net increase of 51 Bcf from the previous week.
Expectations were for stocks to climb by 55 Bcf. Stocks were 725 Bcf less than last year at this time and 519 Bcf below the five-year average of 2,722 Bcf. At 2,203 Bcf, total working gas is within the five-year historical range.
Meanwhile EIA expects the share of U.S. total utility-scale electricity generation from natural gas-fired power plants to rise from 32% in 2017 to 34% in 2018 and to 35% in 2019. We could see a continuation of the profit-taking and short-covering rally on Thursday if today’s storage injection comes in lighter-than-average.
As far as the weather is concerned, NatGasWeather.com is saying, “What will be needed for patterns to again become solidly bullish is for the core of the hot upper ridge to shift back over the east-central, although the data has yet to show when this might occur but suggests during the last week of July, but more likely first week of August.”
Trading Ideas:
–Natural Gas trading range for the day is 188.9-196.3.
–Natural gas slipped as production remained near record highs despite a bullish report showing a smaller than expected storage build last week.
–The U.S. Energy Information Administration (EIA) said utilities added just 51 billion cubic feet (bcf) of gas to storage during the extremely hot week.
–The increase for the week ended July 6 boosted stockpiles to 2.203 trillion cubic feet (tcf), leaving inventories 19.1 percent below the five-year average.
Source: Commodityonline.com
