Natural gas futures surge for the second day on October 5 as participants raised their bullish bet as seen by the open interest. The gas prices had risen 0.63 percent yesterday on the NYMEX.
The energy commodity extended gains to trade at day’s high in the afternoon session after a gap-up start, tracking strong global cues.
On the MCX, natural gas delivery for October soared Rs 7.70, or 1.78 percent to Rs 441.40 per mmBtu at 14:35 hours with a business turnover of 6,418 lots.
Gas delivery for November gained by Rs 7.40, or 1.66 percent, to Rs 452 per mmBtu with a business volume of 2,484 lots.
The value of October and November contracts traded so far is Rs 1,408.63 crore and Rs 68.51 crore, respectively.
MCX iCOMDEX Natural Gas Index increased 77.11 points or 1.48 percent to 5,306.86.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “Natural gas rose marginally yesterday as prices made higher highs and lows and closed around higher highs. At $5.40, support can be found near the 10-day moving average and resistance can be found near the September high of $6.32.”
MCX Natural gas has support at Rs 430 whereas resistance is at Rs 447, he said.
The CFTC data showed that money managers cut their net long positions by 9,692 lots last week.
Hurricane Sam and tropical storms are still wreaking havoc in the Atlantic. Also supporting the prices is supply constraint due to pipeline limitations.
Technicals
The commodity has been trading higher than 5, 20, 50, 100, and 200 days' simple moving averages and exponential moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 68.66, which suggests a positive movement in the price.
At 09:20 GMT, the natural gas price jumped 2.60 percent to $5.91 per mmBtu in New York.
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