MCX Natural Gas: A Perfect See-Saw
CommodityOnline | Jun 05, 2013 07:33AM ET
MCX Natural Gas has been behaving like a See-saw in recent weeks. The rally was a dream trip for natural gas until 242 levels, but aggressive sell off from these levels has shown the real face of a dollar denominated commodity.
Natural Gas prices at MCX are now trading with a range bound rally around 224-228 levels. The June contract has lost the momentum on aggressive sell off at higher levels. It is now trading around 223-229 levels for the week.
The triangular pattern was broken at 226 levels. Since then, the commodity is trying to form a neutral flag pattern.
The commodity should sustain its position around 224-228 levels, or else it may decline to 220 levels. At these levels, the commodity may witness steady rally towards 232.2 levels. Commodity will face another resistance at these levels.
On charts, Natural Gas is showing bearish phenomenon. MACD is quite positive and P-ROC (Rate of Change) is in negative territory. The RSI is in sideways.
Short covering at 220 levels may witness slight uptrend in the near term. The overall trend remains sideways for MCX Natural Gas.
MCX Natural Gas June Short Term: Sideways
Support: 220.1, 218.3
Resistance: 232.2, 235.4
Turn around levels: 220-224-228
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