Zinc market under fresh selling; Support seen at 179.8
Copper market under fresh selling; Support seen at 427.3
MCX Crude Oil may trade in a range between 3436-3900
MCX Nickel under long liquidation; Resistance seen at 771.6
Long liquidation seen in MCX Aluminium; Support seen at 135.8
Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 11.44% to settled at 1618 while prices up 12 rupees.
Now MCX Natural Gas is getting support at 299.8 and below same could see a test of 287.3 levels and resistance is now likely to be seen at 323.2, a move above could see prices testing 334.1.
Natural Gas on MCX settled up 4% at 312.2 on forecasts for colder weather than previously expected, prompting worries that prices could spike even higher this winter due to tight supplies in storage.
The U.S. Energy Information Administration (EIA) said utilities pulled a massive 134 billion cubic feet of gas from inventories during the extremely frigid week ended Nov. 16, marking the earliest triple-digit withdrawal in November on record.
The decrease cut stockpiles to 3.113 trillion cubic feet (tcf), 18.6 percent below the five-year average of 3.823 tcf for this time of year and the lowest for the week since 2002. The latest weather forecast called for a little less cold over the next two weeks than previously expected, prompting Refinitiv to slightly lower its total degree day (TDD) forecast for that period in the lower 48 U.S. states to 388 from 390.
Refinitiv cut its projection for gas demand in the lower 48 U.S. states to 103.7 billion cubic feet per day (bcfd) for from 104.1 bcfd on Tuesday due mostly to lower expected usage by the power sector.
That compares with forecast demand of 104.4 bcfd during expected colder weather. The increase in gas prices in recent weeks have made coal less expensive than gas to fuel power plants in many parts of the country. Gas output in the lower 48 states averaged a record high 87.0 bcfd over the past 30 days.
Trading Ideas:
–Natural Gas trading range for the day is 287.3-334.1.
–Natural gas gained on forecasts for colder weather than previously expected, prompting worries that prices could spike even higher this winter.
–EIA said utilities pulled a massive 134 billion cubic feet of gas from inventories during the extremely frigid week.
–The decrease cut stockpiles to 3.113 tcf, 18.6 percent below the five-year average of 3.823 tcf for this time of year and the lowest for the week since 2002.
Courtesy: Kedia Commodities
Source: Commodityonline.com
