Tech Outlook – MCX Natural Gas under short covering; Support seen at 153.1

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Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 32.52% to settled at 4051 while prices up 1 rupees.Now MCX Natural Gas is getting support at 153.1 and below same could see a test of 151.7 levels, and resistance is now likely to be seen at 156.1, a move above could see prices testing 157.7.Natural Gas on MCX settled up 0.65% at 154.6 following the release of a government report showing a smaller than usual storage gain that was in line with estimates.  The U.S. Energy Information Administration said utilities added just 36 billion cubic feet (bcf) of gas into storage during the hotter than normal week ended July 19.That was in line with analysts’ 37 bcf build estimate in a Reuters poll and compares with an increase of 27 bcf during the same week last year and a five-year (2014-18) average build of 44 bcf for the period. The amount of gas in inventory has remained below the five-year average since September 2017. It fell as low as 33% below that average in March 2019.With production near record highs, however, analysts expect stockpiles will reach a near-normal 3.7 tcf by the end of the summer injection season on Oct. 31. Meteorologists stuck to their earlier predictions that temperatures would remain near normal this week before turning a little warmer next week.Data provider Refinitiv projected demand in the lower 48 U.S. states would rise from 89.5 billion cubic feet per day (bcfd) this week to 90.2 bcfd next week as power generators burn a little more gas to meet higher air conditioning use. Since Tropical Storm Barry hit the central Louisiana coast on July 13, energy firms have been returning Gulf of Mexico wells and platforms to service.Trading Ideas:
–Natural Gas trading range for the day is 151.7-157.7.
–Natural Gas gained following the release of a government report showing a smaller than usual storage gain that was in line with estimates.
–The EIA said utilities added just 36 billion cubic feet (bcf) of gas into storage during the hotter than normal week ended July 19.
–Meteorologists stuck to their earlier predictions that temperatures would remain near normal this week before turning a little warmer next week.Courtesy: Kedia Commodities

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