Natural Gas In Down Trend, Resistance 293-295
CommodityOnline | Apr 28, 2014 05:10AM ET
MCX Natural Gas May as seen in the weekly chart above has opened the week at 288.50 levels during this period prices has made a high of 294.70 levels. At the end of the week as expected prices could not able to breach the resistance levels of 295 levels and corrected from higher levels towards the weekly low of 283.70 levels and formed a “Bearish candlestick” which indicates the start of bearishness. During this week prices are able to close below the previous week’s closing of 287.50 levels and finally closed 0.83% lower on 285.10 levels.
For the next week we expect Natural Gas prices to find support in the range of 275 - 273 levels. Trading consistently below 273 levels would lead towards the strong support at 268 levels.
Resistance is now observed in the range of 293 - 295 levels. Trading consistently above 295 levels would lead towards the strong resistance at 300 levels, and then finally towards the major resistance at 305 levels.
MCX / NYMEX Natural Gas Trading levels for the week
Trend: Down
S1 - 273 / $ 4.50 R1 - 295 / $ 4.90
S2 - 268 / $ 4.30 R2 - 305 / $ 5.10
Weekly Recommendation: Sell MCX Natural Gas May between 292 - 295, SL - 305, Target – 273 / 270.
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