Crude Oil market under long liquidation; Support seen at 4015
MCX Silver may trade in a range between 36257-37017
Gold market under fresh selling; Support seen at 30715
MCX Mentha Oil under short covering
MCX Cotton under fresh buying; Resistance seen at 22380
Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 45.83% to settled at 3043 while prices down 52 rupees.
Now MCX Natural Gas is getting support at 266.9 and below same could see a test of 238.2 levels and resistance is now likely to be seen at 341.5, a move above could see prices testing 387.4.
Natural gas plunged over 15 percent as traders took profits after meteorologists downgraded the frigid weather forecasts that caused prices to soar 37 percent over the past four trading sessions. The U.S. Energy Information Administration (EIA) said utilities added 39 billion cubic feet (bcf) of gas into storage during the week ended Nov. 9.
The increase boosted stockpiles to 3.247 trillion cubic feet (tcf), leaving inventories 15.6 percent below the five-year average of 3.848 tcf for this time of year and the lowest for the week since 2003.
U.S. natural gas futures volume and implied volatility on the New York Mercantile Exchange (NYMEX) hit all-time highs on Wednesday after the front-month contract soared more than 36 percent over the past four days on colder weather forecasts.
The increases in volume and volatility came after the front-month contract jumped to its highest since 2014 on Wednesday on forecasts for much colder weather than previously expected in November.
The cold forecast convinced many in the market that the record amount of gas coming out of the ground would not be enough to shrink a vast 16 percent storage deficit in November as previously projected. Gas output in the lower 48 states averaged a record high 87.0 bcfd over the past 30 days. On a daily basis, however, production fell to 86.0 bcfd, its lowest since hitting an all-time high of 88.0 bcfd on Oct. 31, according to data.
Trading Ideas:
–Natural Gas trading range for the day is 238.2-387.4.
–Natural Gas plunged over 10 percent as traders took profits after meteorologists downgraded the frigid weather forecasts that caused prices to soar.
–The U.S. Energy Information Administration (EIA) said utilities added 39 billion cubic feet (bcf) of gas into storage during the week ended Nov. 9.
–U.S. natural gas futures volume and implied volatility on NYMEX hit all-time highs.
Courtesy: Kedia Commodities
Source: Commodityonline.com
