Gold Silver Reports — Technically Natural gas market is getting support at 212 and below same could see a test of 203 level, And resistance is now likely to be seen at 217, a move above could see prices testing 222.
Natural gas on MCX settled up 0.14% at 213.10 prices hit a fresh 2-month high but were unable to hold on to gains. Natural gas traders are caution ahead of Thursday inventory report from the Department of Energy.
Warmer than normal weather is expected to cover most of the United States over the next 8-14 days which should increase cooling demand and buoy natural gas prices. According to natgaswather.com, a strong spring storm will track across the east central US today and then across the East Coast Thursday-Saturday.
There will be heavy showers and thunderstorms associated with this system into the warm air, and a wintry mix behind it, but most importantly temperatures behind the cold front are expected to drop -10 to -25°F below normal, resulting in a swing back to stronger than normal natural gas demand Thursday through Saturday.
A return to warmer than normal conditions over all but the western US is expected Monday-Wednesday to drop national natural gas demand to well below normal level as much of the country experiences highs in the 60’s to 80’s.
Meanwhile, market participants looked ahead to weekly storage data due on Thursday, which is expected to show a build of 10 billion cubic feet in the week ended March 31. Total natural gas in storage currently stands at 2.049 trillion cubic feet, according to the U.S. Energy Information Administration, 17.1% lower than levels at this time a year ago but 12.2% above the five-year average for this time of year.
MCX Natural Gas Intraday Trading Levels 203-217 l Neal Bhai Reports