MCX Gold under long liquidation; Resistance seen at 32207
MCX Silver likely to move in a range of 37763-38841
MCX Crude Oil may trade between 3852-4020 levels
MCX Copper likely to move in a range of 450.8-462.6
MCX Zinc may move in a range of 194.9-199.5
Technically Natural Gas market is under fresh selling and getting support at 196.9 and below same could see a test of 194.5 level, And resistance is now likely to be seen at 203.2, a move above could see prices testing 207.1.
Natural Gas on MCX settled down 1.77% at 199.40 dropped on fresh selling moved lower as pressure seen on rupee firmness and trader preferred to stay away ahead of Thursday’s inventory report from the Department of Energy. Expectations are for a 135 BCF decline in stockpiles.
Inventories are at the lower end of the 5-year average range while prices remain well below the 5-year average prices. Electricity demand in the US increased in 2018 to a fresh record according to the Department of Energy. The weather is expected to be colder than normal throughout the mid-west and the west over the next 6-10 days.
This colder weather is expected to move east, but the east coast is forecast to see normal to warmer than normal temperatures over the next 2-weeks. The EIA reported US net electricity generation increased by 4% in 2018, reaching a record high of 4,178 million megawatt hours according to EIA’s Electric Power Monthly.
Last year was the first time total utility-scale generation surpassed the pre-recession peak of 4,157 million MWh set in 2007. Weather is the primary driver of year-to-year fluctuations in electricity demand.
The increased demand for electricity in 2018—including record demand in the commercial and residential sectors is largely attributable to cold winters and hot summer. Higher electricity demand boosts natural gas demand to turn electricity turbines.
Trading Ideas:
–Natural Gas trading range for the day is 194.5-207.1.
–Natural Gas slipped on forecasts for milder weather and less heating demand next week than previously expected.
–The market has become much less volatile over the past few weeks with the approach of spring.
–With forecasts for more moderate weather next week, projected demand in the Lower 48 U.S. states would average 104.8 billion cubic feet per day.
Courtesy: Kedia Commodities
Source: Commodityonline.com
