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The continuous futures contract of natural gas on the Multi Commodity Exchange of India (MCX) met with a resistance at ₹220 in late April this year and has seen a near-term corrective decline.
In early November 2020, the contract recorded a 52-week high at ₹251 and began to decline. Since then, it has been in a sideways consolidation phase in the broad range between ₹180 and ₹240.
In mid-March and early April this year, the contract found support at ₹180 and was on a short-term rally until it encountered a key hurdle at ₹220 in late April.
The contract is currently trading at ₹212.9 levels.
Immediate support for the contract is placed at ₹207. A fall below this level can drag the contract down to ₹200 which is crucial medium-term support.
As long as the contract trades above this base, the short-term uptrend that started from the early April will remain in place. Next key supports below ₹200 are placed at ₹192 and ₹180 levels.
On the upside, if the contract breaks above the significant resistance at ₹220 can bring back bullish momentum and take it higher to ₹228 and then to ₹236 levels.
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