AHMEDABAD (Commodity Online): MCX Natural Gas prices plunged more than 10 percent last week on the back of forecast of warmer climate conditions in North Eastern Hemisphere coupled with a stronger dollar. However, further downside in prices was cushioned as production was cut by the leading companies and fall in natural gas inventories.
Today's session Natural Gas February contract opened at Rs 121.70 after closing at Rs 122.60 on Saturday. Currently it's trading at Rs 120.90,down by 1.39 percent by 11:40 IST.
Technically Natural Gas February RSI of 18 days is at 35.94 and it's above 30 indicating some upside in price movement. The Natural Gas February having a good support at Rs 112 and Resistance at Rs 127.traders are advised to buy Natural Gas February contract for this week on dip around Rs 118 with stop loss of Rs 112 for target near Rs 127.and If prices closed above Rs 127 then we can see 138-142 levels very soon, says Ankush Kumar Jain, Analyst with Commodity Online.
below price level of Rs 112 it may more bearish and we can see price level of Rs 100 in coming sessions, added Jain
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