Resistance is now observed in the range of 253 - 255 levels. Trading consistently above 255 levels would lead towards the strong resistance at 260 levels, and then finally towards the major resistance at 266 levels.
MCX Natural Gas Oct. as seen in the weekly chart above has opened the week at 248.10 levels and as expected in the starting of the week prices had rallied sharply towards the weekly high of 259.30 levels. In the mid of the week prices could not able to sustain on the resistance zone of 259 – 260 levels and corrected towards the weekly low of 244.60 levels. In the week prices have closed above the previous week’s closing of 248 levels and finally closed 0.52% higher at 249.30 levels. Technically, as per the candlestick pattern prices have formed “Inverted Hammer type candlestick pattern” indicating weakness in the prices.
For the next week we expect Natural Gas prices to find support in the range of 244 - 243 levels. Trading consistently below 243 levels would lead towards the strong support at 237 levels and then finally towards the major support at 233 levels.
Resistance is now observed in the range of 253 - 255 levels. Trading consistently above 255 levels would lead towards the strong resistance at 260 levels, and then finally towards the major resistance at 266 levels.
MCX / NYMEX Natural Gas Trading levels for the week
Trend: Sideways
S1 - 243 / $ 3.90 R1 - 253 / $ 4.10
S2 - 237 / $ 3.80 R2 - 260 / $ 4.20