Mcx natural gas future opened strong for month of September above major support of 187.7 rupee level. Above this level prices will remain strong and natural gas September trading strategy will remain buy and accumulate for targets 199 and 207 rupees. Mcx natural gas daily chart price trend and momentum both are bullish. Natural gas future is trading above all short term averages with bullish outlook. On downside 192.5 is 5 and below it 190-189 is 20 and 50 days average support zone and major support for this short term uptrend. Daily chart, RSI level is at 61 and with bullish divergence and buy signal was generated at given at 185 rupee level. MACD is at 1 and with fresh rally signal.
Mcx natural gas future this week closed at 196.2 with gain. This was first big gain week for natural gas prices after last 2 week’s profit booking. This week mcx natural gas future hit high of 197.7 and low was 182.2 and closed near high with strong bullish outlook. Total 15 rupee weekly range and positive closing on short covering as well as fundamental buying. On weekly chart natural gas prices this week given long term bullish breakout above 194-195 levels which is 20 and 50 weeks average zone and was strong hurdle. Below that 190 is 5 weeks average and next support on weekly chart. Weekly chart RSI is at 50 with bullish divergence and ready for breakout above 50 and MACD is at -4 with strong recovery patterns.
From long term view, mcx natural gas future given bullish breakout above 208 rupee resistance but not sustained above it and after sharp breakdown hit low of 176 rupee while on downside long term supports are around 170 and 150 rupees and these are also target zone if downtrend persists. But now formed bottom around 180 rupee level and recovering towards 208 rupee resistance zone.
In last 7 months, natural gas prices given 3 negative closing while 4 are positive closing suggesting recovery from lows. In month of august natural gas prices recorded low of 176 while high was around 195 total 19 rupee range and strong positive closing on short covering as well as fundamental change. September also opened positive and prices are heading higher towards 208 and 224 rupee levels.