AHMEDABAD (Commodity Online): Natural gas MCX July contract opened at 204.8 vs. previous close of 205.1 and made an intraday high at 205.2 during the day.
Currently at 5.06 pm, the contract traded at 204.2 down by 0.9 rupee. Natural gas prices have declined by more than six percent on the back of short selling during the last week as the EIA said inventory levels reached to 2762 billion cubic feet (bcf) for the week ended on 02nd July, 2010 increased by 78 bcf. Natural gas future prices are likely to fall further and may test 200-190 levels because of weak physical demand and more than ample supplies.
“Technically, range for Natural gas is from 195-225,” said Shyamal Mehta, Sr. Commodity Analyst with Commodity Online.
14 days RSI for NCDEX Natural gas June contract is at 40 levels and it shows downtrend. Traders can sell Natural Gas June contract near 208 with a stop loss of 211.2 and targets of 202-195.
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