Comments
The October futures contract of Natural gas on the Multi Commodity Exchange (MCX) has moved above a key level at ₹244 after staying flat over the past week. It is currently trading around ₹248.
The recent price action – a decline followed by a sideways trend and then a breakout – indicates a potential bullish trend reversal.
Hence, we expect natural gas futures to rally in the short-term. Although ₹255 is a potential hurdle, the contract is expected to surpass this level and touch ₹265 within a month.
On the contrary, if the contract witnesses a fall from the current level, it has support levels at ₹244 and ₹235. A breach of ₹235 is less likely considering the charts.
Trade strategy
Last week, we suggested initiating longs with stop-loss at ₹234 when the contract surpasses ₹244. Traders can retain this trade.
Going ahead, when the contract rallies past ₹254, tighten the stop-loss to ₹246. Book profits at ₹265.
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.