Naturalgas is getting
support at 335.8 and below same could see a test of 331 level, and
resistance is now likely to be seen at 345.4, a move above could see
prices testing 350.2.
MUMBAI:
Naturalgas
settled up 1.01% at 340.60 shot up on Tuesday as a winter storm trekked
across the northeastern U.S., sparking a rally due to sentiments homes
and business will crank up their heating. Updated weather forecasting
models indicated that a strong winter storm was set to sweep over the
northeastern U.S. on Tuesday and bring strong winds and fresh snowfall.
Frigid weather reports sent gas prices rising on sentiments demand for
the commodity will climb at thermal power plants to heat the region's
homes and businesses.
Nymex natural gas prices surged 8.41% last week, the first weekly gain in three weeks, as chilly winter temperatures in the U.S. led households to burn a higher than normal amount of the fuel to heat their homes. The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department. Speculation that this week’s supply data will show a larger-than-average drawdown in supplies also lent support. Early withdrawal estimates range from 212 billion cubic feet to 240 billion cubic feet. Total U.S. natural gas storage stood at 1.686 trillion cubic feet as of last week, the lowest for this time of year since 2004.
Technically market is under fresh buying as market has witnessed gain in open interest by 6.45% to settled at 15983 while prices up 3.4 rupee, now Naturalgas is getting support at 335.8 and below same could see a test of 331 level, and resistance is now likely to be seen at 345.4, a move above could see prices testing 350.2.
Nymex natural gas prices surged 8.41% last week, the first weekly gain in three weeks, as chilly winter temperatures in the U.S. led households to burn a higher than normal amount of the fuel to heat their homes. The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department. Speculation that this week’s supply data will show a larger-than-average drawdown in supplies also lent support. Early withdrawal estimates range from 212 billion cubic feet to 240 billion cubic feet. Total U.S. natural gas storage stood at 1.686 trillion cubic feet as of last week, the lowest for this time of year since 2004.
Technically market is under fresh buying as market has witnessed gain in open interest by 6.45% to settled at 15983 while prices up 3.4 rupee, now Naturalgas is getting support at 335.8 and below same could see a test of 331 level, and resistance is now likely to be seen at 345.4, a move above could see prices testing 350.2.
Trading Ideas:
--Naturalgas trading range for the day is 331-350.2.
--Natural gas rose as a winter storm trekked across the northeastern U.S., sparking a rally due to sentiments homes and business will crank up their heating.
--Updated weather forecasting models indicated that a strong winter storm was set to sweep over the northeastern U.S. and bring strong winds and fresh snowfall.
--Speculation that this week’s supply data will show a larger-than-average drawdown in supplies also lent support.
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