Comments
Natural Gas prices has been moving up since the start of this week. The Natural Gas Futures contract on the Multi Commodity Exchange (MCX) has risen breaking the resistance at ₹227 per mmBtu sideways range on the upside. The contract is currently trading at ₹231 per mmBtu.
Outlook
Immediate resistance is at ₹233. This level of ₹233 is an important medium-term trendline resistance. The Natural Gas Futures contract has to breach this hurdle to move further higher. Such a break can take the contract up to ₹250 over the next couple of weeks.
On the other hand, if the contract fails to break above ₹233 and turns down it can come under selling pressure. In that case, a fall to ₹220-₹217 can be seen. It will also keep the contract under pressure to see a steep fall to ₹205 and even ₹200 eventually in the coming weeks.
From a slightly larger picture, the Natural Gas Futures has been range bound between ₹200 and ₹235 since mid-June. So, a reversal from around ₹233 will keep the broader sideways range intact. As such, the price action around ₹233 will need a very close watch this week.
Trade strategy
Since ₹233 is a crucial resistance, we suggest traders to stay out of the market for some time. Watch what is happening around ₹233 and then trades can be taken accordingly.
Comments
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.