MCX Zinc under long liquidation; Resistance seen at 193.1
MCX Copper under long liquidation; Support seen at 447.3
MCX Crude Oil under fresh selling; Support seen at 3819
MCX Nickel under fresh selling; Support seen at 907
MCX Aluminium under long liquidation
Technically Natural Gas market is under fresh buying as market has witnessed gain in open interest by 4.27% to settled at 4496 while prices up 1.1 rupees.
Now MCX Natural Gas is getting support at 200.1 and below same could see a test of 199.1 level, And resistance is now likely to be seen at 202.4, a move above could see prices testing 203.7.
Natural Gas on MCX settled up 0.55% at 201.2 on expectations the massive storage deficit will rocket higher due to vast withdrawals needed to meet heating demand during the brutal cold. The market has become much less volatile over the past month with the approach of spring due to a widely held belief that record and growing production can meet any increase in demand.
The utilities likely pulled 198 billion cubic feet of gas from inventories during the frigid week ended March 8. That would be more than double the 88 bcf withdrawal during the same week last year and a sharp contrast with the five-year average of a decrease of 99 bcf for the period. That would be the biggest percentage deficit compared with the five-year normal since June 2014.
The amount of gas in storage has been below the five-year average since September 2017. Meteorologists forecast the weather would turn from brutally cold this week to seasonally cool next week and a little colder than normal during the week of March 17.
With forecasts for moderating weather, data provider Refinitiv projected demand in the Lower 48 U.S. states would drop from an average of 125.3 billion cubic feet per day (bcfd) this week to 103.1 bcfd next week and 105.0 bcfd in two weeks.Output in the Lower 48, meanwhile, edged up to 87.0 bcfd from a four-week low of 86.3 bcfd, according to Refinitiv. That, however, is still well short of the daily all-time high of 89.1 bcfd set on Nov. 30.
Trading Ideas:
–Natural Gas trading range for the day is 199.1-203.7.
–Natural Gas gained on expectations the massive storage deficit will rocket higher due to vast withdrawals needed to meet heating demand during the brutal cold.
–The market has become much less volatile over the past month with the approach of spring due to a widely held belief that record and growing production.
–Meteorologists forecast the weather would turn from brutally cold this week to seasonally cool next week and a little colder than normal during the week of March 17.
Courtesy: Kedia Commodities
Source: Commodityonline.com
