Naturalgas On MCX Settled Down

Naturalgas on MCX settled down -2.14% at 215 as traders monitored shifting weather forecasts to assess the outlook for spring demand and supply levels. While fundamental factor are still supportive for natural gas is the trade plan with China announced last Thursday by the Trump administration. Chinese officials have reached an agreement with their US counterparts on a trade deal, which will allow US exports of liquefied natural gas to China.

The deal gives US natural gas exporters easier access to the massive Chinese market. Last Thursday, prices were boosted after the weekly inventory report from the US Energy Information Administration (EIA) indicated a smaller than expected build. During that advance, final data from the CME Group indicated that open interest increased 16,672 contracts or just over 1%. This implies that new money entering the market drove Thursday’s advance, rather than short-covering.

Typically, moves driven by short-covering prove difficult to sustain, while moves driven by rising open interest are generally met with continued upside follow through. Meanwhile Weather conditions are currently also supportive of natural gas prices, as Demand over the coming week is expected to be moderate, according to natgasweather.com.

Now technically market is under long liquidation as market has witnessed drop in open interest by -24.67% to settled at 7278 while prices down -4.7 rupees, now Naturalgas is getting support at 212.9 and below same could see a test of 210.8 level, And resistance is now likely to be seen at 217.9, a move above could see prices testing 220.8.

For Quick Trial – 8962000225 ✔
or mail us here: info@ways2capital.com
✆ - 0731-6626222 | Toll Free - 1800-3010-2007 
Give a Missed Call for Free Trial - 09699997717 

SHARE

Suhani Verma

  • Image
  • Image
  • Image
    Blogger Comment
    Facebook Comment

0 comments: