Natural Gas MCX – Above 114 Target 134—158, Any Panic Buy 500-100 Lots

Natural Gas MCX – Above 114 Target 134—158, Any Panic Buy 500-100 Lots

Natural gas prices moved lower on Thursday, declining slightly more than 2% following a smaller than expected draw in natural gas inventories.

The weather is expected to be warmer than normal in the United States for the next 6-10 and 8-14 days according to the National Oceanic Atmospheric Administration.  Oil prices rebounded on  Thursday as oil executives in the US appear to be having conversations with Saudi Arabia on a potential global cut in oil output.

Technical Analysis

Natural gas prices moved lower on Thursday declining 2% and testing support near the continuation contract low of 1.51. Resistance on natural gas prices is seen near the 10-day moving average at 1.66. Short term momentum has turned negative as the fast stochastic generated a crossover sell signal.

The current reading on the fast stochastic is 8, well below the oversold trigger level of 20 which could foreshadow a correction. Medium-term momentum is negative as the MACD (moving average convergence divergence) histogram is printing in the red with a downward sloping trajectory which points to lower prices.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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