MCX Nickel may trade between 911.6-946.2 levels
MCX Aluminium likely to move in a range of 141.5-146.3
MCX Mentha Oil under short covering; Support seen at 1655.9
MCX Copper likely to trade between 402.2-416.8 levels
MCX Crude Oil likely to trade in a range between 4711-4819
Technically Natural Gas market is under fresh buying and getting support at 206.4 and below same could see a test of 204.3 level, And resistance is now likely to be seen at 210, a move above could see prices testing 211.5.
Natural Gas on MCX settled up 0.92% at 208.60 gained despite increase in natural gas inventories. Prices remain buoyed as the trajectory of stockpile increases are less than average, pushing current levels below the 5-year average range. The weather is expected to be warmer than normal over the next 2-week according to the National Oceanic Atmospheric Administration.
Comfortable conditions will linger across the Midwest, Mid-Atlantic, and Northeast the next couple days with highs only in the 70s to mid-80s for light demand. The West, South, and Southeast will be mostly hot with highs of mid-80s to 100s. This weekend, hot high pressure will build over the eastern half of the US with upper-80s to 100s gaining ground for strong national demand, while much of the West cools from recent heat.
Overall demand will be MODERATE into Saturday, then increasing to HIGH this weekend through next week. The EIA reports that working gas in storage was 2,435 Bcf as of Friday, August 17, 2018. This represents a net increase of 48 Bcf from the previous week.
Expectations where for an increase of 48 Bcf. Stocks were 684 Bcf less than last year at this time and 599 Bcf below the five-year average of 3,034 Bcf. At 2,435 Bcf, total working gas is below the five-year historical range.
The flat trajectory of the store increase should provide a positive bias to prices given the declining trajectory of inventories ahead of the withdrawing season. While there is no hurricane disturbances in the gulf or Atlantic, there is a large storm in the pacific which will not generate issues for natural gas production.
Trading Ideas:
–Natural gas trading range for the day is 204.3-211.5.
–Natural gas edged higher, following the release of a federal report, which showed the weekly storage build was below normal for the seventh consecutive week.
–The U.S. Energy Information Administration said utilities added 48 billion cubic feet (bcf) of gas into storage in the week of Aug. 17.
–Production in the Lower 48 U.S. states averaged a record-high 82.1 billion cubic feet per day (bcfd) over the past 30 days.
Courtesy: Kedia Commodities
Source: Commodityonline.com
