MCX Mentha Oil likely to trade in a range of 1672.1-1715.7
MCX Aluminium may trade between 134.3-137.3 levels
MCX Nickel may move in a range of 747.3-772.5
MCX Zinc likely to move in a range of 172.2-185
MCX Copper likely to move in a range of 421.1-442.5
Technically MCX Natural Gas is getting support at 302.9 and below same could see a test of 289.7 level, And resistance is now likely to be seen at 324.8, a move above could see prices testing 333.5.
Natural Gas on MCX settled up 3.88% at 316.10 surged higher as colder than normal weather is forecast to cover most of the United States for the next 6-10 and 8-14 days. The cold weather will increase heating demand in the mid-west and east coast increasing the need for natural gas.
Inventories are well below the 5-year average range for this time of year, and a cold blast could substantially reduce stockpiles. Exports continue to rise, as LNG is becoming more popular. The dollar also moved lower as the Fed said that rates were closer to neutral.
The weather is expected to be much colder than normal according to the latest forecast from the National Oceanic Atmospheric Administration. The next 6-10 days shows much colder than normal weather which should substantially increase natural gas demand.
Related Post
NatGasWeather are saying the predictions of milder conditions developing toward mid-December could be weighing on prices, even with some of the coldest temperatures of the winter so far expected to move in next week.
Cold blasts are expected to linger through December 10 and exit the East Coast last. “However, most of the midday data continues to suggest a milder break will set up and span much of the country December 11-14 as high pressure gains in coverage and strength,” NatGasWeather said.”
Looking out 10 to 14 days, the forecaster remained cautious. The outlook for December 11-14 is “quite far out, and it’s not impossible cold lingers longer than expected over the East, like it’s done several times with previous cold outbreaks in recent weeks.
Trading Ideas:
–Natural Gas trading range for the day is 289.7-333.5.
–Natural Gas rallied after forecasts called for colder weather over the next two weeks than previously expected.
–The cold would force utilities to keep pulling more gas out of storage than usual, cutting inventories for this time of year to their lowest in 18 years
–Gas output in the Lower 48 states averaged a record high 87.2 bcfd over the past 30 days.
Courtesy: Kedia Commodities
Source: Commodityonline.com
