Comments
Natural gas futures (continuous contract) on the Multi Commodity Exchange (MCX), which rebounded from ₹190 in mid-June, is now struggling to extend the upswing. Currently, the contract is trading between ₹215 and ₹240.
Though the price action is exhibiting a bullish bias, the contract is facing a resistance at ₹240. Similarly, on the downside, there is a support at ₹215. As long as natural gas futures remain above ₹215, the inclination will be bullish.
If the contract breaks above ₹240, we will most likely witness a swift rally to ₹275—the nearest notable support. Subsequent resistance is at ₹300.
On the other hand, if the contract falls below ₹215, the short-term outlook could turn bearish and we might see a decline to ₹200, which could even extend to ₹190.
In a nut shell, the next swing in price depends on the direction of the breach of the ₹215-240 range.
Trade strategy
Buy natural gas futures if it breaks out of ₹240. Place stop-loss at ₹215 initially.
When the contract rallies past ₹260, tighten the stop-loss to ₹240. Book profits at ₹275.
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.