Mcx natural gas future this week closed at 185.2 with loss. This was second losing week for natural gas prices after last week’s profit booking. This week mcx natural gas future hit high of 192.9 and low was 184.1 and closed near low with bearish outlook. Total 9+ rupee weekly range and negative closing on follow up selling.
On weekly chart natural gas prices formed double bottom around 180 rupee zone which is very bullish sign from long term view and this rally might give breakout above 208.5 and might enter long term bullish trend. If natural gas prices breaks 180 rupee bottom on weekly chart then expect sharp sell off from medium to long term view and big downside for prices.
On weekly chart, natural gas future is trading around 5 weeks average of 186.9 rupee while trading way below 20 and 50 weeks averages which are around 194 and 195 rupee levels and seeing strong supply from market around those levels. Weekly chart RSI is at 44 with bearish divergence and MACD is at -5 with bearish crossover and continues sell signal given at 214 rupee levels.
Mcx natural gas future opened weak for month of august and hit my given bearish targets of 182 and 175 rupees with low near 176.1. Now made perfect bottom at 176 and given trend breakout above 188 rupee and now heading towards my bullish targets of 197 and made swing high of 192.9. Natural gas below 188.5 will remain weak and sell for lower level, only buy if sustain above 188.5 rupees.
Mcx natural gas daily chart price trend and momentum both are bearish. Natural gas future is trading below all short term averages with bearish outlook. On upside 187.5 is 5 and 20 days average level and strong resistance and above it 190 is 50 days average level and trend resistance zone. Daily chart, RSI level is at 45 and with bearish divergence and fresh sell signal given at 189 rupee level. MACD also topping out pattern and suggesting downside for prices in short terms.
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.
In last 7 months, natural gas prices given 4 negative closing while 3 are positive closing suggesting weakness and consolidation phase from long term view.