US, MCX Natural Gas To Consolidate Before Next Move Ahead

Published 12/05/2012, 05:21 AM
Updated 05/14/2017, 06:45 AM
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After a sharp rally in November that took US Henry Hub natural gas prices to a high of $4.050 per Mmbtu, prices have fallen sharply but short covering has helped support prices in the past few days. Now, Natural Gas needs to break key resistance of $3.65 before it can move ahead. But no recovery signs are visible as yet from the charts. The market will look forward to weather forecasts and EIA storage injection for further cues on market movements.
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In MCX daily charts, natural gas December contract has seen a sharp fall tracking the weakness in US natural gas but consolidation is likely in the Rs 192-195 range before any recovery is possible.
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By Sreekumar Raghavan

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