MCX Nickel expected to trade between 765.3-805.7
MCX Aluminium under long liquidation
MCX Mentha Oil under fresh selling; Resistance seen at 1363.6
Zinc market under fresh selling; Support seen at 182.4
Copper market under short covering; Support seen at 438.3
Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 16.15% to settled at 2913 while prices down 21.4 rupees.
Now MCX Natural Gas is getting support at 268.7 and below same could see a test of 261.4 levels and resistance is now likely to be seen at 288.9, a move above could see prices testing 301.8.
Natural Gas on MCX settled down 7.19% at 276.1 on forecasts for warmer weather next week than previously expected. That warm will cut heating demand and allow utilities to leave more fuel in storage, trimming the vast inventory deficit.
Stockpiles are now 20 percent below the normal for this time of year and at their lowest in 16 years. Since the middle of November, the combination of changing weather forecasts and low stockpiles for this time of year has kept futures prices and volatility near their highest in years.
The U.S. Energy Information Administration reported that domestic supplies of natural gas fell by 77 billion cubic feet during the week-ending December 7. Ahead of the report, estimates called for a withdrawal in the low to mid-80s Bcf range.
With the warmer forecasts, Refinitiv projected gas demand in the Lower 48 states would fall to 102.0 billion cubic feet per day (bcfd) next week from the 103.9 bcfd forecast, before rising to 110.5 bcfd during the last week of the year when near-normal weather is expected to return.
Gas output in the Lower 48 has averaged a near record high of 87.4 bcfd in the past 30 days. On a daily basis, production edged up to 86.3 bcfd from a four-week low of 86.1 bcfd.
Trading Ideas:
–Natural Gas trading range for the day is 261.4-301.8.
–Natural gas prices dropped on forecasts for warmer weather next week than previously expected.
–Stockpiles are now 20 percent below the normal for this time of year and at their lowest in 16 years.
–Since the middle of November, the combination of changing weather forecasts and low stockpiles has kept futures prices and volatility near their highest in years.
Courtesy: Kedia Commodities
Source: Commodityonline.com
