Crude Oil market under fresh selling; Support seen at 3580
Silver market under fresh buying; Support seen at 39358
Gold market under short covering; Support seen at 32004
MCX Aluminium likely to move in a range of 126.5-130.7
MCX Mentha Oil under fresh selling; Support seen at 1567.4
Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 1.27% to settled at 3101 while prices up 31.2 rupees.
Now MCX Natural Gas is getting support at 227.8 and below same could see a test of 207.4 levels and resistance is now likely to be seen at 259.4, a move above could see prices testing 270.6.
Natural Gas on MCX settled up 14.38% at 248.20 gained in the line of expectation on short covering as the market gains confidence that the severe cold gripping the United States will persist longer than previously thought. Front-month Henry Hub natural gas futures for February rose more than 13 percent on Monday.
The contract hit a session peak at $3.539 per million British thermal units, its highest level since Dec. 27. The contract was last up 12.7 percent at $3.493 per mmBtu as the market gained confidence that the severe cold gripping the United States will persist longer than previously thought, driving up heating demand and taxing gas stockpiles.
Updated forecasts show below-average temperatures persisting over the next two weeks, with the cold snap drifting eastward from the Midwest toward the East Coast. Traders were anticipating the cold would linger, but weather models available last week didn’t give them the confidence to take long positions in natural gas futures heading into the weekend, according to Jacob Meisel, chief weather analyst at Bespoke Weather Services.
Natural gas prices have been falling since the middle of December, following a spike above $4 per mmBtu in the fall. Hotter-than-usual late summer temperatures and a surprisingly cold fall increased demand for cooling and heating last year, causing natural gas stockpiles to fall to their lowest level in over a decade.
Trading Ideas:
–Natural Gas trading range for the day is 207.4-270.6.
–Natural Gas jumped on forecasts for much colder weather and more heating demand than previously expected for the rest of January.
–Meteorologists said the weather would remain seasonally cold through Jan. 18 before turning extremely frigid during the following week.
–With more cold coming, projected demand for gas in the Lower 48 states would rise to 116.7 billion cubic feet per day (bcfd).
Courtesy: Kedia Commodities
Source: Commodityonline.com
