MCX Gold likely to move in a range of 30846-31246
MCX Silver may trade between 36364-37304 levels
MCX Crude Oil likely to move in a range of 4311-4527
MCX Copper under short covering
MCX Zinc under Fresh buying; Support seen at 183.7
Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 11.95% to settled at 8219 while prices up 2.8 rupees.
Now MCX Natural Gas is getting support at 270.4 and below same could see a test of 265.5 level, And resistance is now likely to be seen at 282.6, a move above could see prices testing 289.9.
Naturalgas on MCX settled up 1.03% at 275.4 driven by expectations of colder-than-normal weather over the next two weeks and concerns about low inventories during the winter. With colder weather projected, data showed total degree days (TDDs) in the lower 48 U.S. states would rise to 371 over the next two weeks, up from the 369 forecast on Friday.
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 108.3 billion cubic feet per day (bcfd) this week and 104.5 bcfd next week.
Related Post
This compared with 87.5 bcfd in the prior week. Utilities likely added 32 billion cubic feet (bcf) of gas into storage during the week ended Nov. 9. That compared with a withdrawal of 13 bcf for the same week last year and a five-year average increase of 19 bcf. Output in the lower 48 states, meanwhile, averaged a record high 87 bcfd over the past 30 days.
On a daily basis, production was only at around 86.96 bcfd on Monday, well below the recent all-time high of 88.0 bcfd on Oct. 31. According to the EIA, the average total supply of natural gas fell by 1% to 91.1 Bcf/d compared with the previous report week. Dry natural gas production remained constant week over week. Average net imports from Canada decreased by 11% from last week.
Trading Ideas:
–Natural Gas trading range for the day is 265.5-289.9.
–Natural Gas gained driven by expectations of colder-than-normal weather over the next two weeks and concerns about low inventories during the winter.
–With colder weather projected, data showed total degree days (TDDs) in the lower 48 U.S. states would rise to 371 over the next two weeks.
–Projected demand in the lower 48 U.S. states will rise to 108.3 billion cubic feet per day (bcfd) this week and 104.5 bcfd next week.
Courtesy: Kedia Commodities
Source: Commodityonline.com
