MCX Nickel likely to move in a range of 841.7-884.9
MCX Aluminium may trade between 142.8-147.8 levels
Crude Oil market under fresh selling; Support seen at 4574
Silver market under short covering; Support seen at 38771
Gold market under short covering; Support seen at 31778
Technically market is under long liquidation as market has witnessed drop in open interest by -28.35% to settled at 4469, now Naturalgas is getting support at 234.5 and below same could see a test of 231.1 level, And resistance is now likely to be seen at 242.5, a move above could see prices testing 247.1.
Natural Gas on MCX settled down 1.57% at 237.80 as prices failed to hold above 240 levels in multi attempted to move above resistance levels following a lower than expected build in natural gas inventories. With the injection season ending and prices likely to rise into the winter, the weaker builds could make prices vulnerable to higher levels.
The weather is expected to be colder than normal for the next two weeks and spread from the mid-west toward the east and west coasts. This is a ridge trough pattern that is coming down from Canada. The EIA reported that working gas in storage was 3,143 Bcf as of Friday, October 26, 2018. This represents a net increase of 48 Bcf from the previous week.
Expectation was for stocks to climb by 53 Bcf. Stocks were 623 Bcf less than last year at this time and 638 Bcf below the five-year average of 3,781 Bcf. At 3,143 Bcf, total working gas is below the five-year historical range. For the period between November 1 and November 7, NatGasWeather.com predicts “moderate” demand and offers the outlook: Warm high pressure will dominate the eastern and southern US today with highs of 50s to 80s, hottest over the Southeast.
A weather system with heavy showers will push through the Midwest and east-central US with rain and snow, and slightly chilly conditions as lows drop into the 20s to 40s. This system will track into the East late Fri-Sun for a little stronger demand.
Trading Ideas:
–Natural Gas trading range for the day is 231.1-247.1.
–Natural gas eased after a report showing a weekly storage build that was in line with estimates.
–The U.S. Energy Information Administration (EIA) said utilities added 48 billion cubic feet (bcf) of gas into storage during the week ended Oct. 26.
–The increase boosted stockpiles to 3.143 tcf, leaving inventories 16.9 percent below the five-year average of 3.781 tcf for this time of year.
Courtesy: Kedia Commodities
Source: Commodityonline.com
