MCX Aluminium may trade between 148.6-152.4
MCX Menthol Oil under long liquidation; Support seen at 1677.5
MCX Cotton under short covering; Support seen at 22526.6
MCX Cardamom likely to move in a range of 1357.6-1368
NCDEX Jeera under fresh buying; Resistance seen at 20113
Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by -5.83% to settled at 3472 while prices down 3.7 rupees.
Now MCX Natural Gas is getting support at 230 and below same could see a test of 225.7 levels and resistance is now likely to be seen at 240, a move above could see prices testing 245.7.
Natural Gas on MCX settled down 1.56% at 234.2 as production was expected to slowly rise as drillers return to offshore Gulf of Mexico wells after Hurricane Michael.
Inventories increased in line with expectations, but the colder than normal weather than is expected to cover most of the US for the next 2-weeks should increase heating demand.
Implied volatility for gas futures rose to an eight-month high as prices jumped earlier in the week on concerns the amount of gas in storage was well below normal for this time of year with just a few weeks left before the start of the winter heating season.
Prices jumped in the week after meteorologists started projecting the weather would turn cold next week, which should prompt consumers to burn more gas than usual to heat homes and businesses. That will leave less fuel available for utilities to inject into storage to shrink the vast inventory deficit.
Drillers reduced output from offshore wells in the Gulf of Mexico by about 35 percent as Hurricane Michael approached the Florida coast. Production in the Lower 48 U.S. states averaged a record high 85.4 billion cubic feet per day (bcfd) over the past 30 days.
On a daily basis, however, output was down to 84.2 bcfd on Thursday from the all-time high of 86.4 bcfd on Sept. 24, due in part to a 1.3 bcfd decline from the Gulf of Mexico, according to data.
Trading Ideas:
–Natural gas trading range for the day is 225.7-245.7.
–Natural gas fell as production was expected to slowly rise as drillers return to offshore Gulf of Mexico wells after Hurricane Michael.
–Inventories increased in line with expectations, but the colder than normal weather than is expected to cover most of the US for next 2-weeks should increase heating demand.
–Implied volatility for gas futures rose to an eight-month high as prices jumped earlier in the week on concerns the amount of gas in storage was well below normal.
Courtesy: Kedia Commodities
Source: Commodityonline.com
