MCX Natural Gas trend uncertain; support 218, 215!!!

MCX Natural Gas trend uncertain; support 218, 215

MUMBAI : Natural gas futures for August delivery on India's Multi Commodity Exchange (MCX) is volatile and the commodity is expected to continue with the trend for the day, according to our analyst at Commodity Online.

“For intra-day, support for the commodity is seen at 218 and 215 levels while resistance is seen at 223 and 225 levels. Intra-day traders are advised to remain cautious while taking positions for the day,” said Tarang Parmar, Research Analyst at Commodity Online.

MCX natural gas for August delivery was seen trading down by 0.85% at Rs.220.80 per mmBtu as of 01.18 PM IST on Wednesday.

NYMEX natural gas prices declined on Wednesday on normal weather expectations across the major natural gas consuming areas in the United States. NYMEX natural gas rose 1.8 percent on Tuesday to $3.743 on rumour that the heat wave last week reduced US stockpiles.

NYMEX natural gas futures for August delivery was seen trading down by 0.55% at $3.723 per mmBtu as of 01.36 PM IST on Wednesday.

Less than expected rise in US natural gas inventories was seen pressuring the commodity movement to certain extent.

Working gas in storage was 2,745 Bcf as of Friday, July 12, 2013, according to EIA estimates. This represents a net increase of 58 Bcf from the previous week.

Stocks were 414 Bcf less than last year at this time and 34 Bcf below the 5-year average of 2,779 Bcf. In the East Region, stocks were 101 Bcf below the 5-year average following net injections of 37 Bcf.

Stocks in the Producing Region were 36 Bcf above the 5-year average of 977 Bcf after a net injection of 15 Bcf. Stocks in the West Region were 31 Bcf above the 5-year average after a net addition of 6 Bcf. At 2,745 Bcf, total working gas is within the 5-year historical range.

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