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The natural gas futures contract traded on the Multi Commodity Exchange (MCX) has dropped sharply over 9 per cent from its high of ₹259.3 per mmBtu recorded on September 30 to about ₹235 now. However, this sharp fall is nearing a strong trend-line support at ₹231 which can halt this fall. A reversal from this support can take the contract higher to ₹245 initially in the coming week and then to ₹250 thereafter.
Traders with a short-term perspective can go long at current levels. Stop-loss can be kept at ₹229 for the target of ₹245. But, if the contract fails to reverse higher and declines below ₹231, then it can extend its fall to ₹229 in the short-term.
MCX-crude oil: The MCX-crude oil futures contract has fallen sharply breaking below its important support at ₹5,500 per barrel. The trend is down. However, there is a key support coming up near ₹5,250. Both a trend line as well as the 200-week moving average is poised at this same level. So an immediate break below ₹5,250 might not be very easy. As such a corrective rally to ₹5,500 look likely in the coming days.
Traders with high risk appetite can go long with a stop-loss at ₹5,170 for the target of ₹5,500.
MCX-crude oil futures contract will now need a decisive break and close above ₹5,500 to ease the downside pressure.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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