Crude Trading Ideas For July 30, 2012

Crude trading range for the day is 4987-5013. Technically market is trading in the range as RSI for 18 days is currently indicating 58.14, where as 50 DMA is at 4800.42 and Crude is trading above the same and getting support at 4992 and below could see a test of 4987 level, And resistance is likely to be seen at 5005, a move above could see prices testing 5013.

Crude settled flat on Saturday after gaining Friday as data showing a slower U.S. growth rate in the second quarter raised further hopes that the Federal Reserve would adopt more monetary easing policies to bolster the economy. Dollar-denominated crude futures saw choppy trading as the euro and dollar also seesawed, buffeted by comments from European leaders.

Nymex Crude oil prices declined around 1.4 percent taking cues from more than expected rise in US Crude oil inventories coupled with expectations of slow economic growth in China. However, sharp downside in prices was cushioned on the back of weakness in the DX along with positive global market sentiments.

Crude oil prices touched a low of $86.84/bbl in the last week and closed at $90.13/bbl in the last trading session of the week. On the MCX, prices declined by 1.7 percent on account of appreciation in the Indian Rupee and closed at Rs.5,004/bbl on Friday after touching a low of Rs.4,896/bbl during the week.

Natural gas trading patterns and ideas for the July 30
Natural gas trading range for the day is 166.57-170.17. Market is looking to take support at 167.5, a break below could see a test of 166.6 and resistance is likely to be seen at 169.3, a move above could see prices testing 170.2. In Saturday's trading session Natural gas has touched the low of 167.4 after opening at 167.4, and finally settled at 168.5.

Natural gas Saturday traded with the positive node and settled 0.47% up at 168.5 as continued hot, summer weather supported prices after report from the U.S. Energy Information Administration indicating U.S. gas supplies rose broadly in line with market expectations last week.

Nymex Natural gas prices declined around 2.6 percent in the last week on the back of rise in US Natural gas inventories. However, weakness in the DX prevented sharp fall in prices.

Gas prices touched a low of $2.991/mmbtu and closed at $3.010/mmbtu in the last trading session of the week. In the Indian markets prices declined by 0.7 percent and closed at Rs.167.70/mmbtu on Friday after touching a low of Rs.166.70/mmbtu in the last week. Appreciation in the Indian Rupee added further downside pressure on the gas prices.

Sparking the earlier rally, the U.S. Energy Information Administration said in its weekly report that Natural gas storage in the U.S. in the week ended July 20 rose by 26 billion cubic feet, broadly in line with market expectations. Inventories rose by 48 billion cubic feet in the same week a year earlier, while the five-year average change for the week is an increase of 61 billion cubic feet, according to U.S. Energy Department data.