Natural gas rebounded sharply on Tuesday, snapping a three-day losing streak
Natural gas futures traded positive on November 3 as participants increased their long positions as seen by the open interest. The gas price had soared by 6.87 percent yesterday on the commodities futures exchange NYMEX.
The energy commodity traded near day’s high in the afternoon session after a gap-up start, tracking the firm global cues.
On the MCX, natural-gas delivery for November climbed by Rs 6.20, or 1.51 percent, to Rs 415.60 per mmBtu at 2.52 pm with a business turnover of 4,308 lots.
Gas delivery for December surged by Rs 5.10, or 1.22 percent, to Rs 423.30 with a business volume of 961 lots.
The value of November and December contracts traded so far stood at Rs 474.19 crore and Rs 38.99 crore, respectively.
MCX Enrgdex tumbled by 54 points or 0.83 percent at 6,425 at 2.56 pm. The index tracks the real-time performance of MCX Crude Oil and MCX Natural Gas futures.
“Natural gas rebounded sharply on Tuesday, snapping a three-day losing streak. The weather is expected to be warmer than normal across the Midwest over the next 6-10 days before cooling off across the majority of the West Coast and the Midwest. There are no significant tropical disturbances in the Atlantic that are expected to develop into tropical cyclones in the next 48 hours,” said Kshitij Purohit, product manager, Currency & Commodities, CapitalVia Global Research Limited.
Traders will take further cues from the Department of Energy weekly inventory report scheduled to be released tomorrow.
Technicals
The commodity has been trading higher than 5, 20, 50, 100, and 200-day simple and exponential moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 51.61, which indicates a neutral trend in the price.
At 9.33 am GMT, the natural gas price was slightly up 0.1 percent quoting at $ 5.55 per mmBtu in New York.
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