Gold Silver Reports – Technically MCX Natural Gas market is getting support key level at 169 and below same could see a test of 165 level, And resistance key is now likely to be seen at 183, a move above could see prices testing 188 level.
Naturalgas MCX settled up 6.49% at 177.3 rallied on short-covering after posting a 7.50% loss last week on concerns over lower demand.
Short-covering and profit-taking are probably behind the rally since there wasn’t any bullish news over the week-end. Expectations of low demand due to improving weather conditions have been the primary price driver lately.
The NWS projected temperatures would be slightly higher than normal in December, January and February across much of the US, but lower than the previous two winters (2015-2016 and 2016-2017), which were among the warmest on record.
High pressure will dominate much of the country through Thursday with above normal temperatures and light demand. A quick cool shot will sweep across the Northeast Wednesday, then warming back above normal after.
Frigid air will pour across the western and central US late in the week with very cold temperatures and strong demand as lows reach -15°F to 20°F. Overall, national demand will be MODERATE-LOW through Friday then HIGH. U.S. dry gas output hit a monthly record high of 77.1bcf per day in November, topping the previous monthly high of 75.4 bcfd in October, according to US EIA data.
Read More: Natural Gas MCX Under Selling, Support Level 162
The current price action strongly indicates that traders are not pricing in any chance of a long, lingering cold weather system this winter season. Due to a combination of oversold technical conditions and periodic cold weather blasts, the market is vulnerable to a few dramatic short-covering rallies, but they are likely to be short-term in nature and serve as new opportunities to re-short at better prices. – Neal Bhai Reports
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