MCX Copper likely to trade between 408.7-417.1 levels
Crude Oil market under fresh buying; Support seen at 4673
MCX Cotton under fresh selling; Resistance seen at 23440
MCX Cardamom under long liquidation
MCX Silver may trade between 36627-37309 levels
Technically now Natural Gas is getting support at 205.8 and below same could see a test of 205 levels and resistance is now likely to be seen at 208.1, a move above could see prices testing 209.6.
Natural Gas on MCX settled down -0.62% at 206.70 dropped from the day’s high after the latest weather models showed early indications of hotter weather at the end of August and the early part of September. The deferred futures strip – November to March – may be benefitting the most from the change in the weather forecast, the nearby September and most active October are not.
This is because the short-term weather forecast is calling for cooler temperatures and this is expected to lower demand. Meanwhile according to NatGasWeather.com, “Overall, the pattern is neutral to a touch bearish this week” because of the weather systems sweeping across the eastern half of the country, the weather forecaster said.
Things turn “at least somewhat bullish the last several days of August into the first week of September” as stronger-than-normal high pressure sets up over the eastern two-thirds of the country, “suggesting hefty deficits should still not be expected to improve until after August, and likely not until mid-September,” NatGasWeather said.
According to the U.S. Energy Information Administration (EIA), U.S. natural gas in storage increased by 33 Bcf to 2.387 Tcf during the week-ended August 10. The build was slightly more than the consensus estimate for a 30 Bcf addition.
The injection fell well short of the 49 Bcf build reported during the corresponding week in 2017 and less than the five-year average addition of 56 Bcf, according to EIA data. Stocks were 687 Bcf, or 22% less than the year-ago level of 3.074 Tcf and 595 Bcf, or 20%, less than the 5-year average of 2.982 Tcf.
Trading Ideas:
–Natural gas trading range for the day is 205-209.6.
–Natural gas inched down on forecasts for hotter-than-normal weather and worries surrounding low inventories in storage.
–Early estimates showed utilities were likely to inject 41 bcf of gas into storage in the week of Aug. 17.
–The increase would also boost stockpiles to 2.428 tcf, leaving inventories about 20 percent below the five-year average.
Courtesy: Kedia Commodities
Source: Commodityonline.com
