MCX Zinc may trade in a range between 196.6-203.2
Copper market under fresh selling; Support seen at 445.5
MCX Nickel likely to move in a range of 884.2-928
MCX Aluminium expected to trade between 147.6-149.8 levels
MCX Mentha Oil under fresh buying; Resistance seen at 1724.2
Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 19.65% to settled at 3873 while prices down 5.3 rupees.
Now MCX Natural Gas is getting support at 235.7 and below same could see a test of 233.7 levels and resistance is now likely to be seen at 240.8, a move above could see prices testing 243.9.
Natural Gas on MCX settled down 2.18% at 237.60 dropped on long liquidation as traders took profit following an in line inventory report released earlier in the day by the Department of Energy.
Pressure also seen as the U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stockpiles increased by 81 billion cubic feet for the week ending October 12.
Market were expecting a storage injection of around 82 billion to 89 billion cubic feet. The five-year average for the week is an injection of 79 billion cubic feet, and last year’s storage increase for the week totaled 51 billion cubic feet.
Natural gas inventories rose by 90 billion cubic feet in the week ending October 5. The trajectory of injections remains subdued which will put the US at a year over year deficit when the withdrawal season begins on November 1. There are no tropical cyclones in the Atlantic or the Caribbean.
The weather is expected to be colder than normal for most of the mid-west and east coast for the next 2-weeks according to the latest forecast from NOAA. A weather system lingers over Texas and the South today where highs will only reach the 40s to 60s with heavy showers continuing.
Chilly conditions linger across the Great Lakes and Northeast with lows of 20s and 30s.
Trading Ideas:
–Natural Gas trading range for the day is 233.7-243.9.
–Natural gas fell on forecasts for above-normal temperatures this winter, even as a federal report showed inventory build in line with expectations.
–The U.S. Energy Information Administration (EIA) said utilities added 81 billion cubic feet to storage during the week ended Oct. 12.
–The trajectory of injections remains subdued which will put the US at a year over year deficit when the withdrawal season begins on November 1.
Courtesy: Kedia Commodities
Source: Commodityonline.com
