MCX Crude Oil under long liquidation
MCX Copper may trade between 419.9-432.7 levels
MCX Zinc likely to move in a range of 174.5-178.5
MCX Nickel may trade between 750.5-768.9 levels
MCX Aluminium likely to move in a range of 134.5-137.9
Technically MCX Natural Gas is getting support at 296.8 and below same could see a test of 289.3 level, And resistance is now likely to be seen at 309.4, a move above could see prices testing 314.5.
Natural Gas on MCX settled down 0.23% at 304.30 prices moved sideways on Tuesday moving slightly lower after testing resistance. Colder than normal weather is forecast to cover most of the United States for the next 6-10 and 8-14 days which should increase heating demand.
Inventory levels remain well below the 5-year average range and expectations are for stocks to decline by 34 Bcf in the latest week according to Estimize.
A stronger dollar could weigh on prices as the Fed moves to raise rates. Working gas stocks’ deficit to the five-year average and deficit to the bottom of the five-year range decrease.
In the Lower 48 states, total working gas stocks are 359 Bcf lower than the five-year minimum, and every storage region is currently lower than the bottom of the five-year range. The deficit to the bottom of the range decreased in all regions except the South Central nonsalt region.
As of this report week, the Midwest region is 69 Bcf lower than the five-year minimum, and the South Central region including both salt and nonsalt facilities is 145 Bcf lower than the five-year minimum.
Meanwhile NatGasWeather updated their forecast and the bulls aren’t going to like it. It basically indicates a milder pattern developing for mid-December.
According to NatGasWeather for November 27 to December 3, “A strong weather system with mostly snow will exit the Northeast today, but with very cold temperatures left behind where lows will reach the -0s to 20s across the northern and east-central US, with 20s and 30s over Texas, and the South-Southeast this morning.”
Trading Ideas:
–Natural Gas trading range for the day is 289.3-314.5.
–Natural Gas prices were little changed as the market took a break on forecasts for less cold this week and the return of record production.
–Gas output in the lower 48 states averaged a record high 87.2 bcfd over the past 30 days.
–On a daily basis production rose to 88.0 bcfd, matching the all-time high hit on Oct. 31, according to data.
Courtesy: Kedia Commodities
Source: Commodityonline.com
