Mcx natural gas future this week closed at 192.5 with loss. This was first weekly loss for natural gas prices. This week mcx natural gas future hit high of 203.9 and low was 191.3 and closed near low on profit booking. Total 12 rupee weekly range for the week.
On weekly chart, mcx natural gas prices given breakout above all long term averages but failed to sustain and retraced back below major 50 weeks average of 195 rupee. On downside 191 to 192 is 5 and 20 weeks average level and major support from long term view. Weekly chart RSI is at 49 with bullish divergence and ready for breakout above 50 and MACD is at -3 with fresh long term buy signal.
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 and we already saw high of203+ this week.
In last 7 months, natural gas prices given 4 negative closing while 3 were positive closing suggesting recovery from lows. In month of September natural gas prices recorded low of 185.1 while high was around 203.9 total 19 rupee range and trading with losses.