CO:MCX natural gas technical outlook targets Rs 190
MUMBAI (Commodity Online): MCX Natural Gas has been trading negatively for the past six months, forming lower tops and flat bottoms, resisted by downward-sloping trend line R.
The price is currently showing some bounce back from the major support line of Rs.170. The 14-period RSI is also showing some divergences and heading north which indicates that the short-term momentum is bullish.
Hence a test of long-term resistances line (R) is possible in the coming 2-3 weeks and buying Natural Gas on dips would be the advisable strategy.
Strategy -- Go long at Rs.170-173 level, with the stop loss closing below Rs.165 level targeting Rs. 190 – 194.
