If we observe natural gas markets, it has been range bound
for quite some time with 205.50 as major resistance on MCX.
On Wednesday, during the trading session we saw a lot of
support from buyers and looking at current market I suspect that this support
will continue.
Although, we need to wait and watch the EIA report. If a
deficit is recorded in the storage than we might see more positive momentum.
The prices might touch 212-215 in upcoming sessions.
Today’s EIA report will be crucial and it might help buyers
enter the market with more confidence.
Natural gas is trading around its resistance and we might
see sellers to enter the market. If we see NG prices above 207 than the trend
might turned bullish else sellers again takeover the market.
I would suggest to keep an eye on the report and if a
decline of storage is reported than we can expect prices to go to up 207. In
this case, I would suggest a buy NG above 205 with target of 210-212.
If EIA is negative for prices than we might see sellers
returning in the market and selling at these levels.
For Intraday, one can initiate buy position with a short
term target. Buy NG at 202.50 with target of 203.70 and SL of 201.
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2 Comments
This article reports quite well on the situation of natural gas trade. Investors should refer to this post. Thanks a lot!
ReplyDeletesuch an informational post, sometimes we just dont realize there is so much going on behind the scenes
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