Natural Gas price has risen back well over the last one week. The Natural Gas Futures contract (November) on the Multi Commodity Exchange (MCX) has risen from a low of ₹231.30 per mmBtu. It touched a high of ₹259.80 on Friday last week and has come down slightly from there. The contract is currently trading at ₹254 per mmBtu.
Outlook
Resistance for the MCX Natural Gas contract is around ₹258 which is holding well for now. However, the bounce from the last week’s low of ₹231.30 is looking strong. Supports are at ₹251 and ₹243.
As long as the contract trades above these supports, the outlook will be bullish. As such the chances are high now for the contract to breach the resistance at ₹258 in the coming days. Such a break can take the MCX Natural Gas Futures contract higher to ₹290 in the coming weeks.
This bullish outlook will get negated only if the contract declines below 243. If that happens, a fall to ₹230 or even ₹220 is possible.
Trade strategy
Traders can go long now at ₹254. Accumulate on dips at ₹246. Keep the stop-loss at ₹238 initially. Trail the stop-loss up to ₹258 as soon as the contract goes up to ₹265. Move the stop-loss further up to ₹268 when the contract touches ₹275. Exit the long positions at ₹285