AHMEDABAD (Commodity Online): MCX Natural gas ended weak due to profit booking after prices rose sharply Friday on anticipation that oncoming winter weather will drive demand. After weeks of above-normal temperatures, heating demand from the winter blast is likely to make at least a small dent in U.S. gas stockpiles, which have built to near record levels over the past month.
In its weekly report on underground gas inventory, the U.S. Energy Information Administration reported Thursday an increase of 92 billion cubic feet, much higher than the five-year average build for the current period. Total U.S. inventories are at 3.716 trillion cubic feet, which is more than 4% above the five-year average of 3.558-tcf.
For today's session MCX Natural Gas Nov contract is looking to take support at 188.8, a break below could see a test of 186.7 and where as resistance is now likely to be seen at 193.2, a move above could see prices testing 195.6.
MCX Natural Gas Nov contract trading range is 186.7-195.6.
Intraday traders can buy MCX Natural Gas Nov contract near 187.5 with the stop loss of 184.5 and can wait for the targets of 191.5 and 193.9.
