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Natural gas futures has been on an upward trajectory since August last year. While there have been corrective declines, the price has largely been rising.
The active contract i.e., the January series closed at ₹344.70 last week. A close above ₹335 has opened the door for a further rally.
That said, before the next leg of upswing, the contract might moderate to ₹315-320 price band, a support. A rally after such a minor correction in price can lift the contract to ₹380, a potential resistance. Barriers above ₹380 can be seen at ₹400 and ₹430.
On the other hand, if natural gas futures breaches ₹315, it can drop to ₹295 and then possibly to ₹270, which are the potential support levels.
Broadly, the trend is bullish, and the price action shows that the natural gas futures are likely to gain from here.
Buy natural gas futures at ₹337 and on a dip to ₹325. Place stop-loss at ₹305. When the contract rises to ₹360, revise the stop-loss to ₹330. Book profits at ₹380.
Published on January 21, 2025
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