Resistance is now observed in the range of 234 - 235 levels. Trading consistently above 235 levels would lead towards the strong resistance at 240 levels, and then finally towards the major resistance at 246 levels.
MUMBAI: MCX Natural Gas Aug as seen in the weekly chart above has opened the week at 238.60 levels and open and high levels were the same levels. During this week prices could not able to sustain on the resistance zone of 238 – 240 levels and sharply corrected towards the weekly low level of 227.60 levels. This week prices finally closed 4.67% lower at 228.70 levels. Technically, prices have formed “Bearish candlestick pattern” which is the sign of pessimism.
For the week beginning 28 July, we expect Natural Gas prices to find support in the range of 224 - 222 levels. Trading consistently below 222 levels would lead towards the strong support at 218 levels and then finally towards the major support at 214 levels.
Resistance is now observed in the range of 234 - 235 levels. Trading consistently above 235 levels would lead towards the strong resistance at 240 levels, and then finally towards the major resistance at 246 levels.
MCX / NYMEX Natural Gas Trading levels for the week
Trend: Down
S1 - 222 / $ 3.65 R1 - 235 / $ 3.90
S2 - 218 / $ 3.55 R2 - 240 / $ 4.05
Weekly Recommendation: Sell MCX Natural Gas August between 234 – 235, SL – 240, Target – 224 /220