Natural Gas MCX Buy on Dips, Target 177— 182

Gold Silver Reports – Natural Gas MCX settled up 1.06% at 172.40 on aggressive short-covering and speculative buying as support seen after a week-end cold blast over key U.S. demand areas is helping to drive natural gas prices sharply higher.   

NATURAL GAS MCX REPORTS

MCX Natural Gas is getting support key at 168 and below same could see a test of 162 levels and resistance key is now likely to be seen at 177, a move above could see prices testing 182.  

According to NatgasWeather.com for the December 25 to December 28 time period, Cold air will sweep across the northern and central U.S. the next few days with lows dropping below 0 degrees Fahrenheit to 20 degrees, with below freezing conditions also pushing into North Texas.    

The Northeast will be slightly cool while mid high pressure sets up across the rest of the Mid-Atlantic and Southeast. Cold air will push the mild ridge out of the way over the East Coast Christmas Day, with reinforcing frigid cold shots continuing through next week. Overall, demand will be rapidly increasing the next several days to high to very high.

Meanwhile the US EIA reported last Thursday that U.S. natural gas stocks decreased by 182 billion cubic feet for the week-ending December 15. The five-year average for the week is a withdrawal of 125bcf, and last year’s storage withdrawal for the week totaled 100bcf.

Read More: Natural Gas MCX Under Selling, Support Level 162

Natural gas inventories fell by 69bcf in the week-ending December 8. Total U.S. stockpiles fell week over week to 5% below last year’s level and are now 2.4% below the five-year average.

The EIA reported that U.S. working stocks of natural gas totaled about 3.444 trillion cubic feet, around 84bcf below the five-year average of 3.528tcf and 183bcf below last year’s total for the same period. – Neal Bhai Reports

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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