Resistance is now observed in the range of 255 - 256 levels. Trading consistently above 255 levels would lead towards the strong resistance at 263 levels, and then finally towards the major resistance at 270 levels.
MCX Natural Gas July as seen in the weekly chart above has opened the week at 261.70 levels and open and high levels were the same levels. During this week prices could not able to sustain on the resistance zone of 262 – 263 levels and sharply corrected towards the weekly low level of 247.50 levels. This week prices have closed below the previous week’s low of 259.10 levels and finally closed 4.61% lower at 250.10 levels. Technically, prices have formed “Bearish candlestick pattern” which is the sign of pessimism.
For the next week we expect Natural Gas prices to find support in the range of 243 - 242 levels. Trading consistently below 242 levels would lead towards the strong support at 238 levels and then finally towards the major support at 234 levels.
Resistance is now observed in the range of 255 - 256 levels. Trading consistently above 255 levels would lead towards the strong resistance at 263 levels, and then finally towards the major resistance at 270 levels.
MCX / NYMEX Natural Gas Trading levels for the week
Trend: Down
S1 - 243 / $ 4.02 R1 - 256 / $ 4.20
S2 - 238 / $ 3.90 R2 - 263 / $ 4.35
Weekly Recommendation: Sell MCX Natural Gas July between 255 – 256, SL – 263, Target – 243 / 240