Natural Gas Prices May Trade Below, Resistance At 250-255 levels
CommodityOnline | Aug 12, 2014 08:26AM ET
The prices rebounded sharply in the previous week after testing and consolidating around the strong support zone of Rs 224/mmbtu odd levels over the last few weeks. The price tested highs of Rs 246.80/mmbtu during the week however the huge supply present at higher levels brought the prices lower during the week.
Although in the immediate short term the momentum remains in the favor of the bulls but as the prices are trading below the strong resistance of Rs 250-255/mmbtu odd levels the chances of meeting strong supply around those levels remain quiet high. We therefore recommend traders to go short around Rs 250-255/mmbtu placing a stop loss above Rs 260/mmbtu for targets of Rs 238/mmbtu.
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