Mcx natural gas future in month of September, closed at 198.5 with gain. This was second gaining month for mcx natural gas future. In September, mcx natural gas future hit high at 204 while recorded low of 185.1. Total almost 19 rupee month range and positive closing for mcx natural gas future on follow up buying on lower levels.
For month of October, mcx natural gas future has major support at 195.5 and above it remain strong and buy and accumulate for big upside targets. On upside mcx natural gas future will have resistance as well as buy targets around 206 and then 214.5 rupee for October series. If fails to hold 195.5 support and breakdown decisively with strong price action and on volume then go short with stop loss for bearish targets up to 187.5 and then 177 rupee.
On daily chart, mcx natural gas is in correction and consolidation phase after hitting recent high of 204 rupees. On downside 195.5 is major support and above it outlook and trading strategy will remain buy and accumulate for upside targets of 205 and 214.5. Daily chart RSI is at 55 with bullish divergence and MACD is at 2.6 with bearish divergence so mixed signals.
So energy commodity traders, watch for correction and consolidation to get over and then enter short or long wit level analysis. If natural gas prices breakdown below 195.5 with strong price action and on volumes then go short with stop loss for big bearish targets of 187.5 and then 177 rupees.