Nickel market under fresh selling; Support seen at 913.5
MCX Zinc likely to trade between 169.1-176.7 levels
MCX Copper likely to trade between 411.9-428.3 levels
Crude Oil market under short covering; Support seen at 4608
Silver market under fresh selling; Support seen at 38256
Technically now Natural gas is getting support at 186.4 and below same could see a test of 184.8 levels and resistance is now likely to be seen at 190.3, a move above could see prices testing 192.6.
Natural Gas on MCX settled down -0.95% at 187.90 on fresh selling as weather continues to point to cooler than normal temperatures throughout most of the mid-west and the pattern is moving eastward.
This should reduce cooling demand during the height of the summer. A weather system with showers and cooling will sweep across the Midwest and east-central US the next few days with highs dropping into the 70s to lower 80s.
Hot high pressure will dominate the rest of the country with highs mainly in the 90s to 110F, hottest from California to Texas for strong demand. Warming will briefly push into the East Fri-Sat, although with a new system with showers and cooling arriving into the Midwest.
Overall, demand will ease to MODERATE the next few days then back to HIGH Fri-Sun. The EIA is estimating that working gas deficit to the five-year average is growing. Net injections into storage totaled 51 Bcf for the week ending July 6, compared with the five-year average net injections of 77 Bcf and last year’s net injections of 59 Bcf during the same week.
Warmer-than-normal temperatures throughout the Lower 48 states contributed to increased power demand for natural gas for air conditioning, but traders are betting that the cooling weather will reduce demand.
Working gas stocks totaled 2,203 Bcf, which is 519 Bcf lower than the five-year average and 725 Bcf lower than last year at this time.According to data from the EIA the average total supply of natural gas fell by 1% compared with the previous report week.
Trading Ideas:
–Natural gas trading range for the day is 184.8-192.6.
–Natural gas fell as the market focused more on record production and forecasts for less hot weather across much of the country.
–The weather continues to point to cooler than normal temperatures throughout most of the mid-west and the pattern is moving eastward.
–The EIA is estimating that working gas deficit to the five-year average is growing.
Courtesy: Kedia Commodities
Source: Commodityonline.com
