Since taking support from the long-term base level of ₹170 per mmBtu in late February 2017, the MCX-Natural Gas contract has been on a medium-term uptrend. After retracing 50 per cent Fibonacci retracement level of the contract’s prior downtrend, it encountered a key resistance at around ₹215 in early April. Last week, the contract took support at around ₹195 and bounced up, gaining 5 per cent. It now faces resistance level of ₹215 ahead. The daily relative strength index is on the brink of entering the bullish zone from the neutral region. A strong break above ₹215 will alter the intermediate-term downtrend and take the contract higher to ₹230 and ₹240 in the medium term. A further rally beyond ₹240 can take the contract to ₹250 and ₹264 in the long run. However, if the contract fails to move beyond ₹215, this can keep it moving sideways in the band between ₹195 and ₹215 for some time. A downward break of ₹195 can pull it down to ₹180 and to ₹170.
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.