Trading consistently above 251 levels would lead towards the strong resistance at 254 levels, and then finally towards the major resistance at 256 levels.
MCX Natural Gas Sept. as seen in the weekly chart above has opened the week at 238 levels and as expected in the starting of the week prices corrected sharply towards the weekly low of 236.40 levels. In the mid of the week prices could not able to breach the support zone of 236 – 235 levels and bounced back sharply from the lower levels towards the weekly high of 248.40 levels. In the end trading session of the week prices again corrected sharply from the higher levels and finally closed 4.57% higher at 246.90levels. In the week prices have closed above the previous week’s closing of 236.10 levels.
For the next week we expect Natural Gas prices to find support in the range of 240 - 239 levels. Trading consistently below 239 levels would lead towards the strong support at 234 levels and then finally towards the major support at 228 levels.
Resistance is now observed in the range of 250 - 251 levels. Trading consistently above 251 levels would lead towards the strong resistance at 254 levels, and then finally towards the major resistance at 256 levels.
MCX / NYMEX Natural Gas Trading levels for the week
Trend: Up
S1 - 240 / $ 3.75 R1 - 250 / $ 3.95
S2 - 234 / $ 3.60 R2 - 254 / $ 4.10
Weekly Recommendation: Buy MCX Natural Gas September between 239 – 240, SL – 234, Target – 250 / 252