MCX Copper may trade in a range between 410.2-422
MCX Nickel likely to move in a range of 747.6-771
MCX Aluminium expected to trade between 130-135.4 levels
MCX Mentha Oil under short covering
NCDEX Chana under long liquidation; Support seen at 4299
Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 34.13% to settled at 1386 while prices down -16.6 rupees.
Now MCX Natural Gas is getting support at 240 and below same could see a test of 231.1 levels and resistance is now likely to be seen at 263, a move above could see prices testing 277.1.
Natural Gas on MCX settled down 6.25% at 248.80 as markets continue to show signs of weakness due to a massive oversupply. This is a longer-term structural issue when it comes to natural gas, and therefore I think it’s going to be difficult for this market to rally for a significant amount of time.
At this point, the $3.25 level is probably the target, and we are now starting to get away from the seasonality of bullish pressure. The winter has been a bit more mild than anticipated in the United States, so that of course has affected demand as well.
Beyond that, natural gas demand could drop from an industrial standpoint as the global economy seems to be struggling to get going. A weak cool front with light snow showers will sweep across the Great Lakes and Northeast Christmas Eve & Christmas Day, followed by rapid warming for the second half of the week where highs will reach the 40s and 50s. Overall, national demand will be LOW until next weekend.
According to NatGasWeather for the period December 24-30, “A weak cool front with light snow showers will sweep across the Great Lakes and Northeast Christmas Eve & Christmas Day, followed by rapid warming for the second half of the week where highs will reach the 40s and 50s.
Trading Ideas:
–Natural Gas trading range for the day is 231.1-277.1.
–Natural Gas dropped as forecasts showed warmer weather than previously expected amid sustained record production.
–Refinitiv data showed there would be 431 heating degree days (HDDs) in the Lower 48 U.S. states over the next two weeks.
–With warm weather so far this month, utilities have been able to leave more gas in storage than usual in December.
Courtesy: Kedia Commodities
Source: Commodityonline.com
