Natural gas futures traded on the Multi Commodity Exchange (MCX) increased sharply on Wednesday after forming a strong base in the ₹165-170 per mmBtu zone.
It is currently trading near ₹175. The outlook for the contract is bullish.
Immediate support is at ₹172 – the 21-day moving average level. The contract may rise to test its 55-day moving average resistance at ₹182 in the coming days.
A strong break above this level will take the contract to its next target of ₹185.
Short-term traders can go long at current levels. Stop-loss can be placed at ₹171 for the target of ₹181.
The short-term outlook for the contract will turn bearish only on a strong break below ₹165. Such a break can take the contract to ₹160.
MCX crude oil: MCX crude oil futures are retaining their ₹3,000-3,350 a barrel sideways range.
The contract recorded a low of ₹3,034 on February 27 and has risen since then.
It is currently poised at ₹3,245 – just below the upper end of the range.
Short-term traders can wait on the sidelines for now.
The contract needs to break out of its range to indicate the next leg of move.
A strong break above ₹3,350 will be bullish.
The ensuing targets on such a break will be ₹3,450 and ₹3,530.
On the other hand, a reversal from ₹3,350 can drag the contract lower to ₹3,000 – the lower end of the range.
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