Natural gas futures head towards positive weekly close amid volatile trade
The momentum indicator Relative Strength Index is at 58.62, which suggests strength in the price.
Mumbai / October 08, 2021 / 15:37 IST
Natural gas futures soared on October 8 as traders raised their bullish bet as seen by the open interest. The gas price had fallen 1.39 percent on October 7 on the NYMEX.The energy commodity traded in the green since morning and heads toward a positive weekly close, despite the sluggish overseas trend.On the MCX, natural gas delivery for October jumped Rs 6.30, or 1.49 percent, to Rs 430.30 per mmBtu at 1459 hours with a business turnover of 4,454 lots.Gas delivery for November increased by Rs 6.40, or 1.47 percent, to Rs 441.20 with a business volume of 2,177 lots.The value of October and November contracts traded so far is Rs 2,098.97 crore and Rs 149.12 crore, respectively.MCX Enrgdex advanced by 83 points or 1.34 percent at 6,278 at 15:01. The index tracks the real-time performance of MCX Crude Oil and MCX Natural Gas futures.Natural gas futures recovered from session lows to finish in the green yesterday. Prices surged higher and closed higher after testing support at a 7 percent loss early in the trading day."Natural gas prices recovered from session lows and closed close to former resistance, which is now short-term support at the 10-day moving average near $5.72. An upward sloping trend line near $5.13 provides support,” said Kshitij Purohit, Product Manager, Currency and Commodities, CapitalVia Global Research Limited.The US Energy Information Administration (EIA) reported that the country's natural gas inventories rose by 118 billion cubic feet (Bcf) for the week ended October 1 against market expectations of a 108 Bcf build.Natural gas in storage was 3,288 Bcf as of Friday, October 1, 2021, according to the Department of Energy. Stocks were 532 Bcf less at the same time last year and 176 Bcf below the 5-year average of 3,464 Bcf.The weather on the East Coast is expected to be warmer than normal for the next two weeks, but cooler than normal on the West Coast. No significant tropical activity is reported in the Atlantic.TechnicalsThe commodity has been trading higher than 20, 50, 100, and 200-day simple moving averages and exponential moving averages but lower than the five-day simple and exponential moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 58.62, which suggests strength in the price.Anand Rathi Investment Services said MCX October natural gas has support at Rs 408.84-401.59 whereas resistances are at Rs 432.29-439.54.At 090 GMT, the natural gas price slipped 0.83 percent to $5.63 per mmBtu in New York.For all commodities-related news, click here
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