Commodity Trading Tips for Naturalgas by Kedia Commodity

Naturalgas on MCX settled down -5.17% at 212.70 sank once again gripping into a bear zone hitting a one-month low because of winter weather forecasts that keep getting progressively warmer. Natural gas was the second-best performer across commodities in 2016. While now it’s experiencing a rollercoaster ride in 2017. Prices are down 21% since Dec. 28, retreating sharply from a two-year high they had hit that day. The selloff has erased more than a month of gains in less than two weeks. Weather forecasts had sent prices soaring when they predicted a chance of extreme cold starting in early January. But those same forecasts have reversed. They show a sharp cold spell abruptly ending this week and instead giving way to extremely warm temperatures over half the country and often more into late January. While weather reports Monday show extremely above-normal temperatures for just about everything east of the Mississippi River until Jan. 23. The warmth at times will stretch west all the way to the Rockies, and this week Dallas could see temperatures more than 15 degrees Fahrenheit above normal, according to MDA Weather Services in Maryland. Now technically market is under fresh selling as market has witnessed gain in open interest by 39.63% to settled at 6958 while prices down -11.6 rupee, now Naturalgas is getting support at 208.5 and below same could see a test of 204.3 level, And resistance is now likely to be seen at 220.5, a move above could see prices testing 228.3.

Trading Ideas:

# Naturalgas trading range for the day is 204.3-228.3.

# Natural gas prices continuous to sank hitting 1 month low due to warmer-than-normal weather for this time of the year.

# MDA Weather Services reported warmer-than-average weather forecasts for the next two weeks spreading across more than half the US.

# Last week EIA reported that inventories fell by 49 Bcf to 3,311 Bcf from December 23–30, 2016.