MCX Nickel may trade between 806.5-864.5 levels
MCX Aluminium under fresh selling; Support seen at 141.7
Zinc market under long liquidation; Support seen at 183.3
Copper market under fresh selling; Support seen at 428
MCX Menthol Oil under short covering
Technically Natural Gas market is under fresh buying as market has witnessed gain in open interest by 24.19% to settled at 9334 while prices up 15.6 rupees.
Now MCX Natural Gas is getting support at 262 and below same could see a test of 251.5 levels and resistance is now likely to be seen at 279.6, a move above could see prices testing 286.7.
Natural Gas on MCX settled up 6.07% at 272.6 to their highest since December 2016 on forecasts for colder weather next week than previously forecast.
Cold will boost heating demand and cause utilities to start withdrawing fuel from storage facilities that are already about 16 percent below normal levels for this time of year. Despite last week’s bigger than expected storage increase, U.S. stockpiles were only at 3.208 trillion cubic feet (tcf), leaving inventories 16.2 percent below the five-year average of 3.829 tcf for this time of year and the lowest for the week since 2003.
Degree days measure the number of degrees a day’s average temperature is above or below 65 Fahrenheit (18 Celsius) and are used to estimate demand to heat or cool homes and businesses. Projected demand in the lower 48 U.S. states will rise to 109.6 billion cubic feet per day (bcfd) next week from 108.4 bcfd forecasted.
That compared with an expected 87.4 bcfd this week. In two weeks, however, when temperatures are expected to rise, demand forecast total demand would only reach 99.6 bcfd. Output in the lower 48 states, meanwhile, averaged a record-high 86.7 bcfd over the past 30 days.
On a daily basis, production was only at around 86.4 bcfd, well below the recent all-time high of 88.0 bcfd on Oct. 31, according to data.
Trading Ideas:
–Natural gas trading range for the day is 251.5-286.7.
–Natural gas rose on forecasts for colder weather next week than previously forecast.
–Cold will boost heating demand and cause utilities to start withdrawing fuel from storage facilities that are already about 16 percent below normal levels.
–Despite last week’s bigger than expected storage increase, U.S. stockpiles were only at 3.208 trillion cubic feet.
Courtesy: Kedia Commodities
Source: Commodityonline.com
