MCX Zinc under fresh selling; Resistance seen at 173.5
Crude Oil market under long liquidation; Support seen at 4590
MCX Nickel under fresh selling; Support seen at 898.8
Silver market under fresh selling; Support seen at 37820
MCX Aluminium under fresh selling; Resistance seen at 141.8
Technically Natural gas market is under fresh selling and getting support at 188.5 and below same could see a test of 187.2 levels and resistance is now likely to be seen at 191.7, a move above could see prices testing 193.6.
Natural gas on MCX settled down 1.61% at 189.70 prices moved lower for the second consecutive trading session. Weaker than expected U.S. manufacturing data offset a warmer than expected weather forecast.
Weather systems with showers and thunderstorms will track across the Midwest and east-central US the next few days with comfortable highs of 70s to lower 80s, including into portions of the southern US for lighter demand.
Hot upper high pressure continues to dominate most of the West and South with highs of 90s to 110°F, hottest from California to Texas. Hot high pressure will expand across the eastern half of the US with 90s gaining ground for increasing national demand late this week through early next week.
The warmer than normal weather that is forecast to cover most of the United States over the next 8-14 days should increase cooling demand. The ridge trough pattern that is forming should create robust demand for natural gas in the west and mid-west. If the pattern move east, demand should increase for the next 3-weeks during the heart of the summer cooling season.
The EIA report that total U.S. consumption of natural gas fell by 2% compared with the previous report week. More moderate temperatures in the northern half of the Lower 48 states, led to a 6% week-over-week decline in natural gas consumed for power generation.
Traders now await the Department of Energy’s inventory report which will be released on Thursday. Inventories remain at the lower end of the average 5-year range and prices are more than 12% below the 5-year average level.
Trading Ideas:
–Natural Gas trading range for the day is 187.2-193.6.
–Natural Gas settled down at 189.70 as weaker than expected U.S. manufacturing data offset a warmer than expected weather forecast.
–The EIA also reported that distillate fuel demand averaged 3.9 million barrels per day, down by 5.9% from the same period last year.
–The warmer than normal weather that is forecast to cover most of the United States over the next 8-14 days should increase cooling demand.
Courtesy: Kedia Commodities
Source: Commodityonline.com
