MCX Copper likely to trade between 390-415.2 levels
Crude Oil market under long liquidation; Support seen at 3212
MCX Nickel under short covering
MCX Aluminium may trade between 123.6-132 levels
MCX Mentha Oil under fresh buying; Resistance seen at 1587.4
Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 5.6% to settled at 4130 while prices down 1.8 rupees.
Now MCX Natural Gas is getting support at 201.9 and below same could see a test of 197.4 levels and resistance is now likely to be seen at 211.4, a move above could see prices testing 216.4.
Natural Gas on MCX settled down 0.86% at 206.40 prices dropped on fresh selling ahead of Friday’s inventory report from the Department of Energy. Expectations are that inventories will decline by 63 Bcf according to Estimize.
Despite the recent tumble in price natural gas inventories remain below the 5-year average range for this time of year. Warmer than normal weather is expected to cover most of the United States for the next 8-14 day which should put downward pressure on natural gas demand.
Net withdrawals from working gas storage are lower than the five-year average for the second week in a row. Net withdrawals from storage totaled 141 Bcf for the week ending December 14, compared with the five-year average net withdrawals of 144 Bcf and last year’s net withdrawals of 166 Bcf during the same week.
Working gas stocks totaled 2,773 Bcf, which is 720 Bcf lower than the five-year average and 697 Bcf lower than last year at this time. According to the IEA supply fell in the latest week by 1% compared with the previous report week. Dry natural gas production remained constant week over week. Average net imports from Canada decreased by 3% from last week.
The EIA also reports that demand is declining driven by a drop in residential and commercial consumption. Total U.S. consumption of natural gas fell by 16% compared with the previous report week.
Trading Ideas:
–Natural Gas trading range for the day is 197.4-216.4.
–Natural gas prices fell after new forecasts called for mild temperatures for the first half of January.
–Meteorologists predicted the weather would remain warmer than normal through Jan. 13 before turning seasonally cold for a few days.
–Stockpiles are 19 percent below normal for this time of year and at their lowest in 13 years.
Courtesy: Kedia Commodities
Source: Commodityonline.com
