MCX Natural Gas May as seen in the weekly chart above has opened the week at 282 levels during this period prices has made a high of 290.50 levels. During this week as expected prices could not able to sustain on the higher levels and corrected back towards the weekly low of 270 levels. Weekly prices are able to close below the previous week’s close of 282.30 levels, and finally close 4.25% lower on 270.30 levels forming Big Bearish candlestick” pattern which indicates the bearish trend.
For the next week we expect Natural Gas prices to find support in the range of 265 - 263 levels. Trading consistently below 263 levels would lead towards the strong support at 256 levels.
Resistance is now observed in the range of 278 - 280 levels. Trading consistently above 288 levels would lead towards the strong resistance at 295 levels, and then finally towards the major resistance at 305 levels.
MCX / NYMEX Natural Gas Trading levels for the week
Trend: Down
S1 - 263 / $ 4.40 R1 - 278 / $ 4.70
S2 - 258 / $ 4.30 R2 - 288 / $ 5.00
Weekly Recommendation: Sell MCX Natural Gas May between 278 - 280, SL - 288, Target – 263 / 258.