MCX natural gas daily chart analysis
MCX Natural gas future last closing price was 324.4 with gain. On daily chart, natural price trend and momentum both on buy side. After correction, we seen momentum is pricked up on short covering and once again, prices are trending towards top.
Natural gas is trading above all short-term averages.
On downside 316 is first support and then 302. 316 is weekly average support while 302 is month average support level. Indicators after correction forming bullish divergences and heading towards overbought zones. On upside 325 and 338 are strong resistances as well as targets for next week.
For next week, mcx natural gas future above 302 remains buy on dips. Any major correction will be buying opportunity. 310-316 is best zone to buy.
MCX natural gas weekly chart analysis
MCX Natural gas future this week closed with over 8% gains. This week mcx ng future low was at 285 while high was at 334. Total 49 rupee or 16% weekly swing and closed with gains. Prices are trading very above all medium to long-term average but 298 and 280 are intermediate support zones for swing traders.
While on upside 348 is only resistance above it natural gas may touch 375-380 zone with sharp short covering.
Near highs, trapped traders continue to steam the rally and try to make new highs.
Natural gas weekly chart indicators are in overbought zones but still with bullish divergence so expect prices to stretch on upside more than expected.
Swing traders and investors can trail stop loss below 298 and wait for 348 as first target and 380 as second one.