The outlook for natural gas futures traded on the Multi Commodity Exchange (MCX) is bullish. The contract has surged about 10 per cent in the past week and currently trades near ₹185 per mmBtu. The 21-day moving average at ₹180 is the immediate support for the contract. The rally can extend further to test ₹200 in the coming days.

Traders can go long. Stop-loss can be kept at ₹178 for the target of ₹197. Intermediate declines to ₹180 can be used to accumulate long positions.

The outlook will turn negative only if the contract records a decisive close below ₹180. Such a break can drag it lower to ₹173 thereafter.

MCX crude oil

MCX crude oil futures are trading within ₹3,600 and ₹4,000 a barrel sideways range. The contract has risen towards the upper end of this range in the past week. It has come off slightly after recording a high of ₹3,955 on Wednesday. The contract is currently trading near ₹3,885. Traders can wait for a breakout of this sideways range to get a clear idea on the next direction of move.

Immediate resistance for the contract is at ₹3,968 – the 200-day moving average. A strong break above this level will increase the bullish momentum for the contract to breach above the psychological level of ₹4,000. Such a break can then take the contract higher to the next target of ₹4,450. On the other hand, inability to break above ₹3,968 and a reversal from current levels will keep the contract inside its sideways range for some time. In such a scenario, the contract can fall to ₹3,700 and ₹3,600.

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