MCX Nickel may trade between 934.2-961.2 levels
MCX Zinc may trade in range between 174.8-180 levels
MCX Aluminium likely to move in a range of 146.7-154.3
MCX Mentha Oil under short covering; Support seen at 1710.4
MCX Copper may trade in a range between 418.1-427.1
Technically Natural Gas market is under fresh buying as market has witnessed gain in open interest by 5.9% to settled at 3248 while prices up 1.9 rupees.
Now MCX Natural Gas is getting support at 200.6 and below same could see a test of 198.4 levels and resistance is now likely to be seen at 204.4, a move above could see prices testing 206.
Natural Gas on MCX settled up 0.95% at 202.70 gained on fresh buying prices are holding support at 200 level. The early price action suggests that aggressive counter-trend buyers maybe recognizing this area as support. There is also evidence of profit-taking. However, this is just normal price action after a steep sell-off.
The fundamentals are bearish at this time and prices are likely to fall further if Thursday’s U.S. Energy Information Administration weekly storage report is bearish. The current weather forecasts are calling for warmer-than-average temperatures in the Northeast over the next two weeks, but this doesn’t appear to be enough to attract enough buyers to turn prices higher.
Temperatures may retreat a little today, but could remain above average. Additionally, above-normal temperatures are also expected across the rest of the country over the same time period. While according to the latest figures from Platts, U.S. dry gas production stood at 82 Bcf/d Tuesday, a drop of 800 MMcf on day. Production is estimated to average 82.2 Bcf/d over the next two weeks.
In August thus far, output averaged 81.8 Bcf/d, up 9.4 Bcf from 72.4 Bcf/d last year. Finally, early guesses for Thursday’s EIA storage report show a build in the low 60s to low 70s range. This is based on increased production, looser power burns and much milder weather.
Trading Ideas:
–Natural Gas trading range for the day is 198.4-206.
–Natural gas prices gained on technical buying ahead of Thursday’s inventory report from the Department of Energy.
–According to data from the EIA, the average total supply of natural gas rose by 1% compared with the previous report week.
–Dry natural gas production grew by 1% compared with the previous report week and averaged 82.6 Bcf per day, 14% higher than last year at this time.
Courtesy: Kedia Commodities
Source: Commodityonline.com
