MCX Copper likely to trade in a range between 431.3-441.7
MCX Crude Oil likely to trade in a range between 4822-4994
MCX Nickel may trade between 841-882.6 levels
MCX Aluminium likely to move in a range of 144-148
MCX Menthol Oil under fresh buying; Support seen at 1804.6
Technically market is getting support at 237.3 and below same could see a test of 232.9 level, And resistance is now likely to be seen at 244.5, a move above could see prices testing 247.3.
Natural Gas on MCX settled up 2.85% at 241.60 prices moved higher on Wednesday ahead of Thursday inventory report from the Department of Energy.
Prices surged more than 2%, and are testing resistance level. Inventories are expected to rise by 58 Bcf in week 43 of 2018 according to Estimize.
This is likely to be the last injection of the season. The weather is expected to become colder than normal as a trough moves its way down through the mid-west where natural gas demand is the strongest.
The ridge trough pattern will keep the weather mild in the east. A recent reclassification of working gas inventories generated a 5 BCF difference from the original number.
Warm high pressure will strengthen across the eastern and southern US Wed-Thu with highs of 50s to 80s, hottest over the Southeast. A weather system with heavy showers will push into the central US & Midwest with rain and snow, and slightly chilly conditions as lows drop into the 20s to 40s.
This system will track into the East Fri-Sat for a swing to stronger demand. California and much of the West will be mild to warm. Overall, swings in national demand the next 7-days, averaging out to MODERATE. The EIA reported at reclassification of working gas stocks during the report week reduces weekly net change.
Non-flow-related adjustments decreased working gas stocks by approximately 5 Bcf in the South Central nonsalt region for the report week. As a result, the weekly net change understates the volume of natural gas that was injected into working gas.
Trading Ideas:
–Natural Gas trading range for the day is 232.9-247.3
–Natural gas rose on forecasts for cooler weather and more heating demand than previously expected for the next two weeks.
–The market was more focused on the coming cold weather and vast storage deficit for this time of year than production, which is at a record high and growing.
–The projected demand in the lower 48 states would rise to 85.7 billion cubic feet per day (bcfd) next week, up from Tuesday’s forecast of 85.4 bcfd.
Courtesy: Kedia Commodities
Source: Commodityonline.com
