Crude Oil market under long liquidation; Support seen at 4562
MCX Silver may trade between 38742-39388 levels
MCX Gold under long liquidation; Support seen at 30019
Long liquidation seen in MCX Cotton
MCX Cardamom under fresh buying; Resistance seen at 1095.3
Technically now Natural Gas is getting support at 188.3 and below same could see a test of 186.8 levels and resistance is now likely to be seen at 191.1, a move above could see prices testing 192.4.
Natural Gas on MCX settled up 0.05% at 189.70 traded on either side of 190 level as the market continued to see production offsetting storage deficits. NatGasWeather said Monday forecasts had been consistent over the past few days in showing widespread heat across large portions of the country but with too much cooling in the Midwest and East to impress.
Hot high pressure will dominate most of the country to open the week with highs of upper 80s to 100s, hottest from California to Texas for strong demand. A weather system with showers and cooling currently over the north-central US will sweep across the Midwest and east-central US Tue-Thu with highs dropping into the 70s to lower 80s.
The rest of the country will remain very hot with highs of mostly 90s and 100s. Demand will be HIGH today then MODERATE mid-week. The U.S. Energy Department’s weekly inventory release showed a smaller-than-expected increase in natural gas supplies. Despite the headline beat, bearish weather predictions pointed to weakening demand and pressured the fuel’s price, which lost around 4% for the week.
Prices made a lower low and a lower high which is a sign of a downtrend. The weather pattern released by NOAA in the afternoon in the U.S. on Monday shows warmer than normal weather covering most of the west and east but colder than normal weather covering most of the mid-west for the next 6-10 and 8-14 days.
It appears traders are focused on the cool weather in the mid-west despite lower than average inventories.
Trading Ideas:
–Natural gas trading range for the day is 186.8-192.4.
–Natural gas prices settled flat on forecasts calling for steady weather and demand over the next two weeks.
–Current inventories are below the 5-year average but above the lower end of the 5-year average range.
–The EIA reports that total U.S. consumption of natural gas fell by 1% compared with the previous report week.
Courtesy: Kedia Commodities
Source: Commodityonline.com
