MCX Nickel may trade in a range between 889.7-946.9 levels
Zinc market under short covering; Support seen at 177.5
Copper may trade in a range between 409-427.4 levels
MCX Aluminium under fresh selling; Resistance seen at 139.7
MCX Mentha Oil under short covering; Support seen at 1523.8
Technically Natural Gas market is under fresh buying as market has witnessed gain in open interest by 5.88% to settled at 3869.
Now MCX Natural Gas is getting support at 194.5 and below same could see a test of 192.6 levels and resistance is now likely to be seen at 197.5, a move above could see prices testing 198.6.
Natural Gas on MCX settled up 1.13% at 196.5 on expectations hot weather would keep the amount of gas going into storage low over the next two weeks. With another smaller-than-usual build in stockpiles last week, traders noted the amount of gas in storage was now at its lowest for this time of year in 15 years.
Despite recent gains, overall price volatility has remained low since February as the market cannot decide whether to fall because production is at record levels or rise because gas in storage is 20 percent below the five-year (2013-2017) average.
Temperatures across much of the country, however, have remained mostly steady at above-normal levels since the start of June and are forecast to remain higher than normal through at least mid-August.
The increase for the week would boost stockpiles to 2.361 trillion cubic feet (tcf), leaving inventories 19.3 percent below the five-year average of 2.926 tcf for this time of year and the lowest for the week since 2003. Production in the Lower 48 U.S. states averaged a near record-high 80.9 billion cubic feet per day (bcfd) over the past 30 days.
On a daily basis, output fell to 80.5 bcfd from an all-time high of 81.8 bcfd, according to data. The Department of Energy reported that stocks increased by 35 Bcf compared to the 40 Bcf expected.
Inventories are now below the 5-year average range while prices remain below the 5-year average price of natural gas at 3.14.
Trading Ideas:
–Natural Gas trading range for the day is 192.6-198.6.
–Natural gas climbed on expectations hot weather would keep the amount of gas going into storage low over the next two weeks.
–With another smaller-than-usual build in stockpiles last week, the amount of gas in storage was now at its lowest for this time of year in 15 years.
–Despite recent gains, overall price volatility has remained low since February as the market cannot decide whether to fall because production is at record levels.
Courtesy: Kedia Commodities
Source: Commodityonline.com
