Natural gas technical analysis 19 to 23 May 2014
Natural gas daily chart technical analysis
Mcx natural gas on last trading session closed at 259.9 with loss. On daily chart, natural gas is in downtrend and prices are trading below 1 and 3 month averages. For next week, ng future support zones are 255 and 248 rupees while on upside 275 and 280 rupees are strong resistances. Daily chart indicators pattern are bearish suggesting downside rally will continue for next week.
Traders below 280-rupee follow sell on rise view for target 255 and then 248-rupee targets. 270-275 is best fresh short entry zone with stop loss above 280 rupee.
Natural gas weekly chart technical analysis
Mcx natural gas future this week closed with loss of almost 4%. This was forth week of loss for this commodity. This week ng future hit high at 270 while low was at 256. Total 14-rupee range or 5% weekly swing and closed with loss. On weekly chart ng, future is closed just above its 12-month average. On upside 275 and 290 are strong medium term resistances while on downside 256 and 230 rupee are strong long-term support zones. 256 is 12-month average level and 230 is 24-month average level. Weekly chart indicators pattern are bearish and near support.
Investors watch 256-rupee zone on weekly closing basis. If prices closes below it then expect targets of 230 to 195 rupee in medium to long terms. If hold then it will be, best investing opportunity for target 300 rupees.