Zinc market under long liquidation; Support seen at 194.9
MCX Copper likely to trade in a range between 444.8-457.8
Crude Oil market iunder fresh buying; Support seen at 5070
MCX Nickel under short covering; Support seen at 906.7
MCX Aluminium under fresh selling; Resistance seen at 149.2
Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 4.8% to settled at 3687 while prices up 0.7 rupees.
Now Natural Gas is getting support at 233.5 and below same could see a test of 228.8 levels and resistance is now likely to be seen at 241.1, a move above could see prices testing 244.
Natural Gas on MCX settled up 0.29% at 238.3 as prices rebounded from lows boosted by a sustained inventory deficit. Weather reports showing an easing of cold temperatures also weighed on prices.
The U.S. Energy Information Administration (EIA) said utilities added 81 billion cubic feet to storage during the week ended Oct. 12, mostly in line with expectations. The build during the week ended Oct. 12 boosted stocks to 3.037 trillion cubic feet, leaving inventories 16.6 percent below the five-year average of 3.642 tcf for this time of year and the lowest for the week since 2003.
Traders noted prices remained within a few cents of the eight-month high hit last week as the amount of gas in storage remains at a vast deficit to normal levels for this time of year.
Demand in the Lower 48 states for the forthcoming week was forecast at 85.7 billion cubic feet per day (bcfd), higher than the 83.6 bcfd forecast for the current week and 82.6 bcfd for the prior week, according to data.
Production in the Lower 48 U.S. states averaged a record-high 85.7 bcfd over the past 30 days. Output rose to 85.7 bcfd on Monday and Tuesday, 85.8 on Wednesday, and to 86.1 on Thursday from a low of 85.0 bcfd last week after drillers shut some offshore production in the Gulf of Mexico ahead of Hurricane Michael.
Trading Ideas:
–Natural Gas trading range for the day is 228.8-244.
–Natural gas prices rebounded from lows boosted by a sustained inventory deficit.
–The U.S. Energy Information Administration (EIA) said utilities added 81 billion cubic feet to storage.
–The build boosted stocks to 3.037 trillion cubic feet, leaving inventories 16.6 percent below the five-year average of 3.642 tcf for this time of year.
Courtesy: Kedia Commodities
Source: Commodityonline.com
