Gold Silver Reports – Natural Gas Buy on Dips Target 197—203, Sell Karna Mana Hai – Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 9.03% to settled at 15214 while prices up 2.2 rupees.
Natural Gas MCX is getting support at 180 and below same could see a test of 177 levels and resistance is now likely to be seen at 192, a move above could see prices testing 197.
Natural Gas on MCX settled up 1.2% at 185.40 on short covering while technically prices holding well above 180 level as investors speculated this week’s supply report will show the largest drop on record as cold weather boosts demand.
While Conditions will warm east of the Plains the next few days with highs reaching the 40s and 50s over the Great Lakes and Northeast, with 60s and 70s over the southern US.
A fresh cold blast will advance into the Rockies and Plains today and Thursday with rain and snow, then advancing into the East this weekend through early next week with lows of -15F to 20s. The West will see weather systems with rain and snow, but relatively mild overall besides the Rockies.
Overall, national demand will be MODERATE this week, increasing to HIGH this weekend through early next week. Early withdrawal estimates for this Thursday’s storage data range from 320bcf to 345bcf. That would surpass the record draw of 287bcf in the week ended Jan. 10, 2014, EIA data showed.
The five-year average change for the week is a decline of 170bcf. Natural gas supplies fell by 206bcf last week to 3.126tcf, approximately 5.8% lower than the five-year average for this time of year. Bullish speculators are betting that the cool weather will increase demand for the heating fuel.
The heating season from November through March is the peak demand period for U.S. gas consumption.