MCX Gold under short covering; Support seen at 32101
MCX Silver under short covering; Resistance seen at 39739
MCX Crude Oil under short covering; Support seen at 3628
MCX Copper under short covering
MCX Zinc likely to move in a range of 174.2-178.4
Technically MCX Natural Gas is getting support at 242.6 and below same could see a test of 234.6 level, And resistance is now likely to be seen at 261.5, a move above could see prices testing 272.4.
Natural Gas on MCX settled up 0.97% at 250.60 prices continuous to trade with positive sentiments as colder than normal weather continues to forecast higher heating demand.
While Nymex Natural gas traded lower on Tuesday after hitting its highest level since December 24 earlier in the session as we’re in a weather market so volatile two-sided trading can be expected.
Although the short-term uptrend may not be affected, the market may be ripe for a pull-back into support while investors continue to digest the weather forecasts. According to NatGasWeather for January 15 to January 21, “High pressure will gain ground over the southern 2/3rds of the country the next several days as highs warm into the 60s and 70s over Texas, South, and Southeast.
There will be glancing shots of cold across the far northern 1/3 for locally stronger demand. Of greatest interest, a frigid cold shot will push into the northern, central, and southern US this weekend with lows of -20s to 20s for strong demand.
The West will see a mix of mild and cool as weather systems track inland. Overall, national demand will be moderate-low this week, increasing to very high this weekend.” While Bespoke Weather Services said changes in the weather models over the weekend were “incredibly bullish” with intense cold arriving for the latter third of January.
The market is likely to remain underpinned by the bullish six- to 10-day and 11-15 day weather forecasts, however, there is a warm period between the cold blasts that may encourage some light profit-taking.
Trading Ideas:
–Natural Gas trading range for the day is 234.6-272.4.
–Natural Gas pulled back as forecasts for less cold next week offset calls for brutally frigid weather at the end of the month.
–Meteorologists moderated their earlier forecast for the last week of January, noting the weather would remain near normal this week.
–Intense volatility late last year was due to a combination of changing weather forecasts and concerns about low stockpiles.
Courtesy: Kedia Commodities
Source: Commodityonline.com
