Nat Gas Corrects Sharply, In Overbought Territory

Published 01/15/2014, 06:26 AM
Nat Gas
Natural Gas prices corrected sharply in the previous week after testing its previous top of Rs 280/mmbtu odd levels. The prices failed to breach the previous major top of Rs 280 odd levels and after forming a small topping formation on the daily charts they plunged sharply lower to test Rs 245/mmbtu. Also the RSI on the daily chart was hovering in overbought territo-ry, while the prices were also losing steam to breach above its returning line of the uptrend channel, which prompted profit booking and even some fresh shorting.

Going forward the prices have tested 61.8% fib. Retrace-ment support from where they can once again see a bounce towards Rs 260-265 /mmbtu , however the rejuvenated bears might not let the bulls to push the prices any further from there and bring the prices lower.

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