Natural gas on MCX settled down -1.26% at 314.20 on long liquidation as traders are trying to claw back to break-even for the week. The price action is actually a reflection of the concerns over the inconsistent weather forecasts and uncertainty ahead of this week’s U.S. Energy Information Administration’s weekly storage report. The weather service also made no changes to its short-term forecast. They are still saying that a series of cold shots was still on track to impact much of the country the rest of this week and into early next week for strong national demand.
They also continued to say that mild high pressure was expected to follow, however, covering much of the northern and eastern United States December 12-17 and likely longer as the market waits on the better potential for cold shots out of Canada to return to the northern United States. The short-term forecast is inconsistent enough to hold prices in a range, but the new forecast for January, calling for colder temperatures, could be what’s fueling the slight upside bias. Now Weekly data from the EIA on U.S. natural-gas supplies will be released on Friday instead of Thursday because of Wednesday’s day of mourning.
Technically market is under long liquidation as market has witnessed drop in open interest by -0.62% to settle at 3512 while prices down -4 rupees, now Naturalgas is getting support at 308.3 and below same could see a test of 302.5 level, And resistance is now likely to be seen at 323.3, a move above could see prices testing 332.5.
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