The short-term uptrend in natural gas futures traded on the Multi Commodity Exchange (MCX) seems to be in a danger of reversing. The contract recorded a high of ₹189.3 per mmBtu on Monday and has come off sharply from there.
It is currently trading near ₹177. Immediate resistance is at ₹180. Inability to breach this hurdle could increase the downside pressure on the contract. As long as the contract trades below ₹180, there is a strong likelihood of seeing a fall to ₹172 – the 21-day moving average support or even ₹169. Short-term traders with high risk appetite can initiate fresh short position. Stop-loss can be placed at ₹181 for the target of ₹172. Intermediate rallies to ₹180 can be considered to accumulate more short positions.
The downside pressure will ease only if the contract records a strong break above ₹180. Such a break can take the contract higher to ₹189 once again.
Crude oil: Crude oil futures have been range-bound between ₹3,000 and ₹3,350 a barrel over the last three weeks.
The contract is trading near ₹3,120. The immediate outlook is not clear. So traders can stay out of the market until a clear trade signal emerges. A breakout on either side of ₹3,000-3,350 will determine the next trend for the contract. A strong break below ₹3,000 will be bearish and can drag the contract lower to ₹2,900 and ₹2,750. On the other hand, a break above ₹3,350 can trigger a rally to ₹3,450 and ₹3,550.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.