Natural Gas Oct Buying, Target At 267 / 270
CommodityOnline | Sep 30, 2014 01:00AM ET
Price resistance can be seen at 270 mark followed by final resistance at 290 mark. Support can be seen at 240 followed by strong support at 228 mark.
MCX Natural Gas Oct contract has been trading in the down trend and consolidating in past two weeks. Last week, the consolidation phase was broken as seen in “Big Bullish Candlestick pattern” and trading above it. Also, it breached the major down trend line and trading above the same indicating change in trend.
Indicator Analysis
The Moving Averages prices is also trading above its 5 Week EMA, suggesting an uptrend. As far as oscillator analysis is concerned, 14 week RSI is rising and current reading stands at 45. MACD is also rising from negative to positive zone indicating optimism.
Key Levels
Price resistance can be seen at 270 mark followed by final resistance at 290 mark. Support can be seen at 240 followed by strong support at 228 mark.
Looking at positive chart formation coupled with oscillators indicating optimism, we recommend buying in MCX Natural Gas Oct contract.
Positional Call - Buy MCX Natural Gas Oct between 245 - 249, SL - 234, Target – 267 / 270.
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