MCX Zinc under long liquidation; Support seen at 191.2
MCX Nickel likely to move in a range of 900.8-959.8
MCX Aluminium under short covering; Support seen at 143.8
MCX Mentha Oil under fresh buying; Support seen at 1607.8
MCX Copper under long liquidation
Technically MCX Natural Gas market is under short covering and getting support at 198 and below same could see a test of 196 level, And resistance is now likely to be seen at 201.5, a move above could see prices testing 203.
Natural Gas on MCX settled up 0.35% at 200.10 prices moved higher but traded in the range on Thursday, rising following a slightly larger than expected draw in natural gas inventories.
The final inventory estimate from Estimize was 140 Bcf, and Thursday’s decline of 149 BCF took stockpiles down to the lower end of the average range for this time of year. Inventories are well below the 5-year average range, but prices are below the 5-year average range.
This is mainly because production remain at elevated levels. The weather is expected to be colder than normal throughout the west and mid-west, but warmer than normal throughout most of the east coast during the next 2-weeks. The colder than normal weather will buoy prices in California and Chicago, but the NYMEX contract is in Henry Hub Louisiana, which will not see a spike due to colder than normal weather.
Yesterday the DoE on Thursday reported that working gas in storage was 1,390 Bcf as of Friday, March 1, 2019. This represents a net decrease of 149 Bcf from the previous week. Expectations according to Estimize were that natural gas stockpiles would decline by 140 Bcf. Stocks were 243 Bcf less than last year at this time and 464 Bcf below the five-year average of 1,854 Bcf.
The 5-year average price of natural gas is $3.12, which puts current prices well below the 5-year average price for this time of year. At 1,390 Bcf, total working gas is within the five-year historical range.
Trading Ideas:
–Naturalgas trading range for the day is 196-203.
–Natural gas pared gains following the release of a federal report showing a slightly bigger-than-expected weekly storage draw.
–The U.S. Energy Information Administration (EIA) said utilities pulled 149 billion cubic feet of gas.
–Meteorologists forecast the weather would be slightly warmer over the next two weeks than previously expected.
Courtesy: Kedia Commodities
Source: Commodityonline.com
