MCX Gold under long liquidation
MCX Silver may move in a range of 37959-39349
MCX Crude Oil under long liquidation; Support seen at 5441
MCX Copper may move in a range of 449-461.6
MCX Zinc under Fresh buying; Support seen at 194.9
Technically Natural Gas market is under fresh buying and getting support at 236.3 and below same could see a test of 230.5 level, And resistance is now likely to be seen at 246.3, a move above could see prices testing 250.5.
Natural Gas on MCX settled up 4.08% at 242.20 surged higher on Monday rising as Hurricane Michael made its way into the Gulf of Mexico. While Michael is expected to make landfall on Wednesday in Alabama or Florida, there is concern by producers that it might shift west hitting some of the production areas near the Louisiana coast.
Approximately 230mcf of natural gas was shut in when Tropical Storm Gordon made its way into the Gulf in September. Hurricane and tropical storm activity is picking up with another 2-storms moving off the coast of Africa with am better than 50% chance of becoming cyclones.
The weather over the next 6-10 days is expected to be colder than normal in the mid-west, but that is expected to change to normal over the next 8-14 days. Hedge funds added to long position in futures and options and reduced short according to the latest industry report.
Related Post
Hedge funds added to long position in futures and options and reduced short position according to the latest commitment of trader’s report released for the date ending October 2, 2018. According to the CFTC, managed money increase long position in futures and options by 31.5K contracts while reducing short position in futures and options by 36.4K.
Hedge funds are betting on higher prices. The next long position increased to 213K long, which is comprised of 288k long and 75K short. According to data from the EIA, the average total supply of natural gas remained the same as in the previous report week, averaging 89.3bcf per day.
Trading Ideas:
–Natural Gas trading range for the day is 230.5-250.5.
–Natural Gas prices surged higher as Hurricane Michael made its way into the Gulf of Mexico.
–While Michael is expected to make landfall on Wednesday, there is concern by producers that it might shift west hitting some of the production areas.
–The weather over the next 6-10 days is expected to be colder than normal in the mid-west, but that is expected to change to normal over the next 8-14 days.
Courtesy: Kedia Commodities
Source: Commodityonline.com
