Natural Gas

Commodity View:

·         Natural gas prices have been moving in a range of Rs.240-Rs.165 for last 1year forming a triangle formation.

  

·         The triangle pattern is visible on a weekly chart of Multi Commodities Exchange (MCX) as well as New York Mercantile Exchange (NYMEX). Prices are on a verge of a breakout. Prices are testing the upper band of the triangle and facing resistance of Rs.211. If prices manage to close above Rs.212, a breakout is possible. The breakout is also possible on Relative Strength Index (RSI). Moving Average Convergence Divergence (MACD) is positive supporting the trend. The prices are even trading above short term (21days) and mid-term (50days) exponential moving averages (EMA). Prices are heading towards the 200 days EMA where it could find hurdle.

·         We suggest clients to buy MCX Natural Gas June on a close above 212 for the target of 220 / 228 / 235 with the stop loss of 204 (closing basis).