MCX Natural Gas Target For Today: Prices Rise but Fail To Recapture

MCX Natural Gas Target For Today: Natural Gas yesterday settled up by 1.34% at 189.1 on forecasts for cooler weather and higher heating demand in mid- to late-April, the first time in seven weeks prices rose three straight days.

Traders noted that while temperatures may be lower, they were expected to remain at near- to above-normal levels during that time and liquefied natural gas (LNG) exports were expected to decline this month during routine plant and pipeline maintenance.

Traders also noted that mild weather this week will likely cause utilities to boost injections into storage by so much that the total amount of gas in inventory will rise above the five-year (2016-2020) average for the first time since the February freeze.

Read More: Natural Gas Price Supported by $2.48 key Level — Neal Bhai Reports

Data provider Refinitiv said output in the Lower 48 U.S. states has averaged 91.9 billion cubic feet per day (bcfd) so far in April, up from 91.6 bcfd in March but still well below the record monthly high of 95.4 bcfd in November 2019.

Refinitiv projected average gas demand, including exports, would hold near 89.3 bcfd this week and next before rising to 91.4 bcfd in two weeks as the weather cools.

The demand forecast for next week was higher than Refinitiv projected on Thursday. The amount of gas flowing to U.S. LNG export plants, meanwhile, has averaged 11.1 bcfd so far in April, which would top March’s monthly record of 10.8 bcfd.

Commodity Natural Gas Trading Tips,

  • MCX Natural gas intraday tips and trading zone is 181—207.
  • Natural Gas edged up on forecasts for cooler weather and higher heating demand in mid- to late-April.
  • Mild weather this week will likely cause utilities to boost injections into storage by so much that the total amount of gas in inventory.
  • Data provider Refinitiv said output in the Lower 48 U.S. states has averaged 91.9 bcfd so far in April.

Natural gas prices moved higher on Monday, rising 1.46% but was unable to recapture resistance levels. The weather is expected to be cooler than normal throughout the southcentral and mid-west regions for the next 6-10 and 8-14 days according to the National Oceanic Atmospheric Administration. The EIA expects that U.S. consumption of natural gas will be down 0.4% from 2020.

Read More: Natural Gas Skyrockets Again to $500 as Blackouts Spread in U.S.

MCX Natural Gas Target For Today And Technical Analysis

Natural gas prices moved higher on Monday but failed to recapture resistance near the 10-day moving average at 2.57. Target resistance is seen near the mid-March highs at 2.69 and then the 50-day moving average at 2.73. Support is seen near the April lows at 2.45. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).

The EIA Expects Consumption to Fall

EIA expects that U.S. consumption of natural gas will average 82.9 billion cubic feet per day in 2021, down 0.4% from 2020. The decline in U.S. natural gas consumption is a result of less natural gas consumed for electric power generation because of higher natural gas prices compared with last year. In 2021, we expect residential and commercial natural gas consumption will rise by a total of 1.1 Bcf/d from 2020 and industrial consumption will rise by 1.4 Bcf/d from 2020. (With Agency Inputs)

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MCX Natural Gas Target For Today: Prices Rise but Fail To Recapture via @goldsilverrepor
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