MCX Natural Gas Trading Zone Keys 188-212

Natural Gas

Gold Silver Reports – Technically market is getting support at 192 and below same could see a test of 188 levels and resistance is now likely to be seen at 205, a move above could see prices testing 212. 

Natural gas on MCX settled down -3.95% at 197.10 tumbled extending losses after data showed that domestic supplies in storage fell less than forecast last week.

While this week Natural gas prices whipsawed as colder than normal weather than is expected to cover most of the US over the next 8-14 days was offset by a lower than expected draw in natural gas inventories according to the EIA. 

Yesterday the US EIA reported Thursday morning that U.S. natural gas stocks decreased by 33bcf for the week ending November 24. Analysts were expecting a storage withdrawal of around 37bcf.

The five-year average for the week is a withdrawal of 47bcf and last year’s storage withdrawal for the week totaled 50bcf. Natural gas inventories fell by 46bcf in the week ending November 17.

While Demand for the coming week is expected to be low as temperatures in the northern tier of states remain in a range of 30 to 50 degrees. The central and southern states are forecast to see mild weather, with highs in the 50 to 70 degree range.

Colder air will arrive in the western states this weekend and then spread across the country as the week progresses. Demand will rise as the colder weather moves to more heavily populated areas of the country.

The central and southern US will be mild to warm with highs of 50s to 70s. The West will be mild until a cold weather system arrives this weekend, with cold air then spreading across the rest of the country next week. Overall, demand will be low through Monday, then rapidly increasing to high. – Neal Bhai Reports