The natural gas futures contract traded on the Multi Commodity Exchange (MCX) has been trading volatile over last couple of weeks. The sharp fall from the high of ₹279.3 per mmBtu recorded on November 10 has halted at ₹243.4 last Friday. The contract has subsequently reversed sharply higher again in the past week. The outlook is bullish now. Immediate resistance is at ₹280. There is a strong likelihood to breach this hurdle and rally further in the coming days. The next targets will be ₹286 and ₹291. Traders with a short-term perspective can go long at current levels. Stop-loss can be placed at ₹269 for the target of ₹286. Supports for the MCX-natural gas futures contract are placed at ₹270 and ₹264.

MCX-Crude oil: The contract has been consolidating sideways within its overall downtrend in the range between ₹4,525 and ₹4,725 a barrel in the past week. The broader downtrend remains intact and there is little room left for the contract to fall further.

Traders can hold their short positions with a revised stop-loss at ₹4,760 for the target of ₹4,500. As mentioned last week, there is a key long-term trend line support at ₹4,460 which can halt the current downtrend. A reversal from this support could be a beginning of a new up leg. As such the price action in the coming days will be crucial. So traders can square-off their short positions and wait on the sidelines to get fresh trade signals.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

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