Copper market under fresh buying; Support seen at 421.3
MCX Nickel may trade between 897.7-921.3 levels
MCX Aluminium likely to move in a range of 146.8-151.4
MCX Mentha Oil under long liquidation
Cotton market under fresh buying;Support seen at 22676
Technically MCX Natural Gas is getting support at 202 and below same could see a test of 199.5 levels and resistance is now likely to be seen at 206.6, a move above could see prices testing 208.7.
Natural Gas on MCX settled down 1.21% at 204.40 on long liquidation settled lower and volume was light because of a U.S. holiday. Most of the major traders are on the sidelines yesterday so prices could be manipulated by a few large orders.
The market is trading lower after a three day rally was fueled by storage concerns ahead of the withdrawal season which begins in November. Last week’s three day jump may be an indication that buyers are still present and willing to defend the market against a substantial sell-off. They may be betting that the winter heating season will begin with a large storage deficit.
This will make the market vulnerable later in the year to any prolonged cold spell. Until we get a new weather forecast and some estimates for this week’s EIA report, we’re going to let the price action do the talking. A sustained move over 200 will indicate strength.
A sustained move under 208 will signal weakness. Meanwhile a swing back to stronger than normal national demand will occur early this week as hot high pressure returns across the Ohio Valley and East with highs of upper 80s to 90s.
It remains very warm over the South and Southeast, although with areas of heavy showers that will limit the coverage of 90s, therefore cooler versus last week, aided by T.S. Gordon arriving later in the week. The West will be mostly warm to hot with highs of mid-80s to 100s, although there will be showers and cooling over the Rockies and Plains as an early season cool front sweeps through.
Trading Ideas:
–Natural gas trading range for the day is 199.5-208.7.
–Natural gas dropped on profit booking after prices gained on forecasts for hotter weather and amid concerns about low inventories.
–Weekly data from the U.S. Energy Information Administration (EIA) showed a higher than normal injection of gas into storage in the week.
–Production in the Lower 48 U.S. states averaged a record 82.6 billion cubic feet per day (bcfd) over the past 30 days.
Courtesy: Kedia Commodities
Source: Commodityonline.com
