Comments
Natural Gas prices have been on a recovery rally over the last couple of weeks. The Natural Gas futures contract on the Multi Commodity Exchange made a low of ₹128.50 per mmBtu in mid-February. From there the price has surged to ₹162 per mmBtu now.
Outlook
The broader trend is down. Within this the current rise seems to be a corrective rally. On the charts, the short-term picture is positive. As such the chances are looking high for the Natural Gas futures contract to move further up from here.
Immediate support is at ₹160. Below that ₹157 is the next important support. As long as the contract trades above ₹157 the outlook will remain positive. The Natural Gas futures contract can move up to ₹170. A break above ₹170 can take the contract further up to ₹180 in the next few weeks.
To turn the outlook negative, the contract has to fall below ₹157. That will indicate the resumption of the overall downtrend and will drag the contract lower.
Trading strategy
Traders with high-risk appetite can go long now at around ₹162. Accumulate on dips at ₹159. Keep a stop-loss at ₹156. Trail the stop-loss up to ₹164 as soon as the contract moves up to ₹166. Move the stop-loss further up to ₹167 when the price touches ₹169. Exit the longs at ₹170.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.