Zinc market under fresh selling; Support seen at 171.6
Copper likely to trade in a range between 408.1-428.3
MCX Nickel under fresh selling; Support seen at 882.6
MCX Aluminium likely to move in a range of 144.5-150.7
MCX Mentha Oil under long liquidation
Now technically market is getting support at 201 and below same could see a test of 199.6 levels and resistance is now likely to be seen at 205, a move above could see prices testing 207.6.
Natural Gas on MCX settled down 0.93% at 202.50 as a combination of near-term tropical weather and longer-term seasonality posed downside risks for demand. Sentiments turned down despite concern that tropical storm Gordon would turn into a hurricane in the Gulf of Mexico.
Several oil and gas rigs have pulled their employees off their platforms which will likely reduce production. The decline offset the gains seen on Friday (natural gas was closed on Monday), as traders had priced in worse conditions.
The weather is expected to be warmer than normal throughout the United States for the next 8-14 days which should increase cooling demand. 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.
Hurricane Florence with max winds of 75 miles an hour appears to be turning north and will not be a treat to the US mainland. Tropical storm Gordon is churning in the gulf and is likely to make landfall in Mississippi.
Trading Ideas:
–Natural Gas trading range for the day is 199.6-207.6.
–Natural gas fell on expectations demand will decline after Tropical Storm Gordon hits the Gulf Coast, causing power outages and cooler weather.
–Several oil and gas rigs have pulled their employees off their platforms which will likely reduce production.
–The weather is expected to be warmer than normal throughout the United States for the next 8-14 days which should increase cooling demand.
Source: Commodityonline.com
