Aluminium market under short covering; Support seen at 146.2
Nickel market under fresh selling; Resistance seen at 896.6
MCX Zinc under fresh selling; Support seen at 172.8
MCX Cotton market under short covering; Support seen at 22736.6
MCX Cardamom under fresh buying; Support Seen at 1438.4
Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 8.74% to settle at 3988.
Now MCX Natural Gas is getting support at 199.1 and below same could see a test of 197.5 levels and resistance is now likely to be seen at 201.9, a move above could see prices testing 203.1.
Natural Gas on MCX settled up 0.25% at 200.7 on short covering after prices remained under pressure on forecasts for cooler weather and lower demand next week than previously expected.
Prices dropped earlier in the week because Tropical Storm Gordon brought cooler weather to the lower Mississippi River valley after hitting the Gulf Coast Tuesday night.
According to the U.S. Energy Information Administration, U.S. natural gas in storage increased by 63 Bcf to 2.568 Tcf for the week-ended August 31. The injection was also more than the 60-Bcf build reported during the corresponding week in 2017 but less than the five-year average addition of 65 Bcf, according to EIA data.
Overall futures volatility has remained relatively low since February as the market cannot decide whether to fall because production is at record levels or rise because the amount of gas in storage is about 19 percent below the five-year (2013-17) average.
Temperatures across much of the country, however, have held steady at above-normal levels since the start of June and are forecast to remain higher than normal through at least late September.
Above-normal temperatures in September were less hot than above normal temperatures in July and August. Production in the Lower 48 U.S. states, meanwhile, averaged a record high 83.1 bcfd over the past 30 days. On a daily basis, output edged up to 82.9 bcfd on Thursday from a low of 82.8 bcfd on Wednesday due to shut-ins in the Gulf ahead of Gordon, according to data.
Trading Ideas:
–Natural Gas trading range for the day is 197.5-203.1.
–Natural gas gained on short covering after prices remained under pressure on forecasts for cooler weather and lower demand than previously expected.
–According to the U.S. Energy Information Administration, U.S. natural gas in storage increased by 63 Bcf to 2.568 Tcf for the week-ended August 31.
–Prices dropped earlier in the week because Tropical Storm Gordon brought cooler weather to the lower Mississippi River valley after hitting the Gulf Coast Tuesday night.
Courtesy: Kedia Commodities
Source: Commodityonline.com
