In the 4 hourly chart of MCX Natural Gas May as below, we have observed that prices have given an Inverted Head and Shoulder Breakout which is a Bullish Reversal Pattern. The technical oscillator RSI is in buy mode, and prices are trading above short term averages. We expect prices to first go up to levels of 230, which is the pattern target and then up to levels of 232 which is the previous top. If the prices trade below the 213 level, the entire pattern gets negated.
Based on the technical chart reading, we recommend Buying MCX Natural Gas March contract at CMP 220.30 with a stop loss placed below the 213 level on closing basis. We expect targets of 230 and 232 to be achieved in the medium term.