Zinc market under long liquidation; Support seen at 178.4
MCX Copper may trade in a range between 424.1-435.5
MCX Crude Oil may trade between 4662-4856 levels
MCX Silver may trade between 38198-38864 levels
Gold market under short covering; Support seen at 29808
Technically Natural Gas market is under short covering as market has witnessed drop in open interest by -30.79% to settled at 1834 while prices up 1.7 rupees.
Now MCX Natural Gas is getting support at 188.9 and below same could see a test of 187.5 levels and resistance is now likely to be seen at 191.3, a move above could see prices testing 192.3.
Natural Gas on MCX settled up 0.9% at 190.20 gained on short-covering ahead of weekly inventory data schedule tonight. Natural gas prices jumped following news that European Commission President Jean-Claude Juncker made some concessions which could include purchasing natural gas directly from the United States.
In which trade tensions between the U.S. and the European bloc are expected to dominate. With end of injection season natural gas storage inventories forecast to be the lowest since 2008, prices are beginning to rebound. Cooler than normal weather is forecast to cover most of the United States for the next 8-14 days, which somewhat countered the bullish news.
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While Strong upper high pressure will dominate the western and southern US with highs of 90s to 110°F, hottest from California to Texas for strong regional demand. A warm and wet weather system will impact the East the next few days with showers and thunderstorms and highs of 70s and 80s.
Overall, demand will be HIGH over the West & South, MODERATE across the Midwest & East-Central US. The US EIA’s in their Short-Term Energy Outlook forecasts working natural gas inventories on October 31 will be 3,470bcf 365 Bcf which is 10% lower than the five-year average and 346 Bcf and 9% lower than last year’s level.
This forecast inventory level would be the lowest end-of-October storage level since 2008, when inventories ended the month at 3,412 Bcf.
Trading Ideas:
–Natural gas trading range for the day is 187.5-192.3.
–Natural gas rose on forecasts for a little more heat over the next two weeks.
–Cooler than normal weather is forecast to cover most of the United States for the next 8-14 days
–U.S. EIA’s Short-Term Energy Outlook forecasts working natural gas inventories on October 31 will be 3,470bcf 365 Bcf which is 10% lower than the five-year average.
Courtesy: Kedia Commodities
Source: Commodityonline.com
