MCX Nickel under fresh buying; Resistance seen at 878.8
Crude Oil market under fresh buying; Support seen at 3960
MCX Aluminium likely to move in a range of 129.5-132.7
MCX Mentha Oil under fresh buying; Resistance seen at 1695.5
MCX Silver may trade in a range between 39969-40393
Natural Gas on MCX settled up 0.64% at 187.80 gained on short covering in light volume as most of the US was off due to the President’s day holiday. Short-covering was the theme the previous session and it looks as if this theme is continuing.
Buyers are likely reacting to the blast of cold air over the weekend in key demand areas and expectations of lingering cold throughout the week. Furthermore, the latest forecasts show more weather is coming late in the month.
A weather system and associated cold blast will sweep across the Great Lakes, Ohio Valley, and Northeast the next couple days, while also quite chilly with lows behind the front dropping into the 0s to 20s and with snow into Monday.
Cooler air will also push into N. Texas and portions of the South with lows of 20s and 30s. The West will be cool to cold with areas of rain and snow as weather systems track through. Mild high pressure will build across the South & East Thu-Sun with highs of 50s to 80s, warmest over the South & Southeast.
Overall, national demand will be HIGH-VERY HIGH through Wednesday, then gradually easing towards MODERATE late in the week through the coming weekend. Meanwhile the EIA expects strong growth in U.S. natural gas production to put downward pressure on prices in 2019.
Trading Ideas:
–Natural Gas trading range for the day is 183.8-192.6.
–Natural gas gained on forecasts of colder weather and more heating demand over the next two weeks than previously expected.
–U.S. dry natural gas production will rise to an all-time high of 90.16 billion cubic feet per day in 2019 from a record high of 83.26 bcfd in 2018.
–EIA also projected U.S. gas consumption would rise to an all-time high of 82.53 bcfd in 2019 from a record high 81.68 bcfd in 2018.
Courtesy: Kedia Commodities
Source: Commodityonline.com
