Natural Gas prices to find support in the range of 228 - 226 levels. Trading consistently below 226 levels would lead towards the strong support at 222 levels and then finally towards the major support at 218 levels.
MCX Natural Gas Sept. as seen in the weekly chart above has opened the week at 228.90 levels and during this week the open and low were the same levels. In the starting of the week prices rallied sharply towards the weekly high of 245 levels. In the mid of the week prices could not able to sustain on the resistance zone of 245 – 247 levels and as expected corrected sharply towards 230.90 levels. In the week prices closed above the previous closing of 233.40 levels and finally closed 0.94% higher at 235.60 levels.
For the next week we expect Natural Gas prices to find support in the range of 228 - 226 levels. Trading consistently below 226 levels would lead towards the strong support at 222 levels and then finally towards the major support at 218 levels.
Resistance is now observed in the range of 240 - 242 levels. Trading consistently above 242 levels would lead towards the strong resistance at 247 levels, and then finally towards the major resistance at 253 levels.
MCX / NYMEX Natural Gas Trading levels for the week
Trend: Sideways Down
S1 - 228 / $ 3.70 R1 - 242 / $ 3.95
S2 - 222 / $ 3.60 R2 - 247 / $ 4.05
Weekly Recommendation: Sell MCX Natural Gas September between 240 – 242, SL – 247, Target – 228 / 222