Commodity Calls

Outlook turns positive for MCX-Natural Gas

Yoganand D BL Research Bureau | Updated on February 11, 2021

 

Gaining bullish momentum, the MCX-Natural Gas futures contract has jumped 3 per cent on Wednesday.

Extending this rally, the contract has surpassed the key immediate resistance at ₹215 on Thursday by advancing another 4 per cent with above average volume, trading at around ₹220. This rally has strengthened the short term uptrend that has been in place from the base level of ₹165 recorded in late December 2020. While trending up, the contract had decisively surpassed the key resistance as well as 50-day moving average in early February.

 

The medium-term trend has been up for the contract since it took support at ₹120 in July 2020. The contract trades well above the 21- and 50-day moving averages.

Moreover, the daily as well as the weekly price rate of change indicators are hovering in the positive territory implying buying interest. The short-term outlook is bullish.

Traders can buy the contract with a stop-loss at ₹205. A clear rally beyond ₹220 can take the contract higher to ₹225 and then to ₹230 levels in the coming weeks.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on February 11, 2021
This article is closed for comments.
Please Email the Editor