MCX Natural Gas Trading Zone 170-184 Support Seen at 168

MCX Natural Gas Trading Zone 170-184 Support Seen at 168

Gold Silver Reports — MCX Natural Gas Trading Zone 170-184 Support Seen at 168 — Natural Gas on MCX settled up 2.33% at 180.20 in the line of expectation rose for the fifth-straight session, boosted by government data that showed a smaller-than-expected increase in stockpiles last week. The US EIA said natural-gas stockpiles grew by 22bcf last week against the expectation of 26 bcf. Total stocks now stand at 3.339tcf, up 327bcf from a year ago and 405bcf above the five-year average, the government said.

A smaller-than-expected addition to storage likely indicates smaller supply or greater demand than expected, and prices moved higher immediately after the data’s release. While a heatwave on the East Coast has been driving strong demand for gas-fired power, also summer gas prices are often driven by how much people run their air conditioners and ramp up demand for power.

A weak cool front with heavy showers and thunderstorms extends from Texas and the South through the Ohio Valley and the Mid-Atlantic, although warmer temperatures will push in late today and Friday as highs warm into the upper 80s. It’s also hot over the West with upper 80s to 100s, although a fresh weather system pushing into the northern Rockies and Plains will push cooler temperatures over the central US this weekend.

With areas of showers and thunderstorms over many regions this weekend and again next week, temperatures will be seasonal over many regions with mainly 70s and 80s over the north to 80s and 90s south. Overall, natural gas demand will be moderate the next 7-days. Now technically market is under short covering as market has witnessed drop in open interest by -8.29% to settled at 6534, now Natural gas is getting support at 168 and below same could see a test of 170 level, and resistance is now likely to be seen at 182 a move above could see prices testing 184 — Neal Bhai Reports 

MCX Natural Gas Trading Zone 170-184 Support Seen at 168

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