Tech Outlook – MCX Natural Gas may trade between 147-155.8 levels

0
54


NCDEX Mustard Seed likely to move in a range of 3881-3969


MCX Zinc under short covering; Resistance seen at 187.1


MCX Crude Palm Oil under fresh buying; Support seen at 546.9


MCX Copper under long liquidation; Resistance seen at 446.3


NCDEX Ref. Soya Oil under fresh buying; Resistance seen at 758

Technically MCX Natural Gas market is getting support at 148.6 and below same could see a test of 147 level, and resistance is now likely to be seen at 153, a move above could see prices testing 155.8.Natural Gas on MCX settled down 0.86% at 150.10 holding 150 level and look to trade in smaller range as lack of fresh information from over the weekend is helping to hold the market inside Friday’s range, which tends to indicate investor indecision and impending volatility.Helping to hold prices in a tight range are forecasts showing building heat in long-range weather forecasts, last week’s surprisingly large drop in feed gas deliveries to LNG facilities, an above-average storage injection and record production.One of these factors has to change in order to get some movement in the market. Meanwhile according to NatGasWeather for August 12 to August 18, “Strong high pressure will rule the southern US with highs of 90s to 100s, hottest over the Southwest & Texas for strong demand.A strong weekend cool front is exiting the Midwest and Northeast with temperatures warming Monday into the mid to upper 80s from Chicago to New York City, although cooling back off mid-week as weather systems return across the northern US with highs of only 70s and 80s. Overall, strong demand over the southern US but only light to moderate demand across the northern US after Monday.Overall, demand will be moderate to low across the northern US and high across the southern US, but not quite strong enough overall.” While holding above 150 level could lean to the upside because of warmer forecast trends. However, the move is not likely to last. Prices could firm again later in the week if the heat begins to expand into the Midwest and East.Trading Ideas:
–Natural Gas trading range for the day is 147-155.8.
–Natural Gas eased as the market focused more on an increase in production to record levels as opposed to forecasts for more demand.
–Prices remained under pressure because record production and mild spring weather allowed utilities to inject huge amounts of gas into storage.
–But with production expected to keep growing, stockpiles should reach a near-normal 3.7 trillion cubic feet (tcf) by the end of the summer.Courtesy: Kedia Commodities

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.