Zinc market under long liquidation; Support seen at 186.4
MCX Copper may trade between 410.6-423.8 levels
Crude Oil market under fresh buying; Support seen at 3733
Silver market under fresh selling; Support seen at 38768
MCX Gold likely to trade in a range between 31878-32218
Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 26.94% to settled at 2647 while prices up 8.4 rupees.
Now MCX Natural Gas is getting support at 216.2 and below same could see a test of 209.2 level, And resistance is now likely to be seen at 227.3, a move above could see prices testing 231.4.
Natural Gas on MCX settled up 3.91% at 223.2 on forecasts for more frigid weather next week than previously predicted and reduced production. In their latest forecast, meteorologists predicted the weather would turn brutally cold next week but would be less severe during the first week of February than earlier expected.
With colder weather expected, financial data provider Refinitiv boosted its gas demand projection for the Lower 48 states to 129.8 billion cubic feet per day (bcfd) for next week from its forecast on Wednesday of 128.3 bcfd.
Gas output in the Lower 48 states, meanwhile, held near the four-month low of 85.0 bcfd hit after a pipe blast in Ohio caused drillers in the Marcellus and Utica shale region to cut production.
That is down from a recent high of 87.4 bcfd on Jan. 11, according to Refinitiv. U.S. dry natural gas production will rise to an all-time high of 90.19 billion cubic feet per day (bcfd) in 2019 from a record high 83.31 bcfd in 2018, according to the Energy Information Administration’s Short Term Energy Outlook (STEO).
The latest January output projection for 2019 was up from EIA’s 89.99-bcfd forecast in December. EIA also projected U.S. gas consumption would rise to an all-time high of 82.65 bcfd in 2019 from a record high 81.58 bcfd in 2018.
Trading Ideas:
–Natural Gas trading range for the day is 209.2-231.4.
–Natural Gas climbed on forecasts for more frigid weather next week than previously predicted and reduced production.
–In their latest forecast, meteorologists predicted the weather would turn brutally cold next week but would be less severe during the first week of February.
–With colder weather expected, financial data provider Refinitiv boosted its gas demand projection for the Lower 48 states to 129.8 billion cubic feet per day.
Courtesy: Kedia Commodities
Source: Commodityonline.com
