MCX Zinc likely to move in a range of 190.2-200.4
MCX Copper likely to move in a range of 444.2-453.8
MCX Nickel under long liquidation; Resistance seen at 945.9
MCX Aluminium likely to move in a range of 134.6-139.6
MCX Mentha Oil under long liquidation; Support seen at 1538.9
Technically Natural Gas market is getting support at 190.7 and below same could see a test of 188.1 levels and resistance is now likely to be seen at 195.5, a move above could see prices testing 197.7.
Natural Gas on MCX settled up 0.68% at 193.20 gained on fresh buying after touching a multi-month low the previous session. The move is likely being fueled by light short-covering and position squaring. Traders could be adjusting positions in reaction to technically oversold conditions or refreshed weather forecasts.
Near the end of Tuesday’s session, prices started to stabilize due to the lack of clarity over next week’s forecasts. According to reports, there are still major differences between the Global Forecast System (GFS), which is predicting milder temperatures and the European model, which is calling for colder temperatures.
According to NatGasWeather for February 5 to February 11, “Mild conditions will continue across the Ohio Valley and East through Thursday with highs of 40s and 50s. It will be exceptionally comfortable across the southern U.S. and Mid-Atlantic Coast with highs of 70s and 80s. The West will be stormy but only slightly cool.
The coldest air will be confined to the Northern Plains where weather systems will trace through with highs of -0s to 20s, including rain and snow at times advancing across the rest of the Midwest. Cold air will return across the Midwest & Northeast Friday through Sunday with lows of -0s to 20s.
Overall, national demand will be low through Thursday then increasing to high Saturday through Sunday.” By the end of the trading session prices were up slightly but near unchanged on the day. According to data from the EIA, the average total supply of natural gas remained the same as in the previous report week, averaging 94.0 Bcf per day.
Trading Ideas:
— Natural Gas trading range for the day is 188.1-197.7
— Natural Gas settled flat while investors awaited direction as forecasts for slightly colder weather countered record production.
— Natural Gas production in the Lower 48 states, meanwhile, eased to 85.8 bcfd from 86.5 bcfd on Monday due mostly to declines from the offshore Gulf of Mexico.
–That low volatility seems to have started last week even as record cold froze the U.S. Midwest and boosted demand for gas to a record high.
Courtesy: Kedia Commodities
Source: Commodityonline.com
