MCX Zinc likely to trade in a range between 177.3-184.5
MCX Copper likely to trade in a range between 414.9-430.5
MCX Nickel likely to move in a range of 747.4-781
MCX Aluminium likely to move in a range of 133.7-136.7
Short covering seen in MCX Mentha Oil
Technically Natural Gas market is getting support at 246.8 and below same could see a test of 237.7 levels and resistance is now likely to be seen at 269.1, a move above could see prices testing 282.3.
Natural Gas on MCX settled down -2.81% at 255.90 continue to march lower, as technical resistance has gotten in the way of buyers. According to NatGasWeather for the period December 19-25, “Milder conditions will spread across the northeastern U.S. after a chilly start of the day.
The rest of the U.S. remains quite mild with highs of 40s to 50s across the North, with 60s and 70s across the southern U.S. A strong weather system will develop across the South and Southeast today, then track up the East Coast Friday-Saturday with rain and snow, just not very cold.
Mild conditions will continue east of the Plains next week apart from a brief cold shot around Christmas Eve/Christmas across the Midwest and East. The West will see occasional weather systems with valley rains & mountain snows for a mix of mild and cool days.
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Overall, national demand will be low. While Working gas stocks’ deficit to the five-year average decreased, and the deficit to the bottom of the five-year range increased. In the Lower 48 states, total working gas stocks are 427 Bcf lower than the five-year minimum, and every storage region is currently lower than the bottom of its five-year range.
The deficit to the bottom of the range increased in all regions except the Pacific and South Central salt regions. NatGasWeather continues to watch the December 31 to January 3 time period for the next opportunity for more powerful cold shots to push into the northern United States out of Canada. Deficits could go from 723 Bcf back towards 600 Bcf and potentially 575 Bcf.”
Trading Ideas:
–Natural gas trading range for the day is 237.7-282.3.
–Natural gas dropped on an increase in daily output and forecasts for milder weather through late next week.
–Meteorologists forecast the weather would remain warmer than usual through Dec. 28 before turning seasonally cold for a few days around New Year’s.
–Working gas stocks’ deficit to the five-year average decreased, and the deficit to the bottom of the five-year range increased.
Courtesy: Kedia Commodities
Source: Commodityonline.com
