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MCX-natural gas contract has been volatile and has been under pressure in the past three weeks. The contract slumped 10 per cent last week and has closed decisively below ₹200 per mmBtu. It has tumbled about 15 per cent in the last three weeks. Immediate support is at ₹180 — the 38.2 per cent Fibonacci retracement level. A strong break below it can drag the contract lower to ₹168, ₹167 or ₹165 . These supports are likely to halt the fall and the possibility is high for a reversal from this ₹168-165 support zone. Such a reversal can take the contract higher to ₹190 or even higher. Traders with a short-term perspective can go long on a strong reversal from the ₹168-165 support zone. Stop-loss can be placed at ₹158 for the target of ₹185. Revise the stop-loss higher to ₹175 as soon as the contract moves up to ₹180. On the other hand, if the natural gas contract declines below ₹165, it can test ₹160 initially. Further break below ₹160 can drag it to ₹155 or ₹153 thereafter.
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