Crude Oil and Natural Gas have been trading in green and are
expected to continue this trend. Both counters have been following positive
trends.
Looking at fundamentals for both counters, Crude Oil is
expected to touch record high numbers globally. Looking at Natural Gas counter, it
is evident that buyers have been dominating the market and having a sell position
is not profitable.
Natural Gas
Natural Gas is highly impacted by US markets and traders are
expecting increase in demand in coming 15 days based on the weather reports.
Natural Gas prices surged on Monday and were seen
trading in green. Market closed 221 on MCX and we can expected the bullish
trend to continue this week. Although, it is retesting resistance levels of $3
in US market but traders are positive and buyers are expected to dominate this
counter.
Looking at weather conditions in US, we can expect few
tropical disturbance in Atlantic and with inventories remaining below 5-years
average, we can expect jump in prices.
Looking at technical analysis, we can expect positive momentum.
I would advise adding Natural Gas at every dip. Buying on dip should be
strategy for NG
Positional buyers should expect Natural Gas to touch 240 in
coming weeks
Initiate a buy position at 221 for target of 225 and SL of
217.
Crude Oil
Buy Crude at 5250 |
With decline in Indian Rupee and record low production in
US, Brent Crude Oil is expected to trade above $82 barrels globally.
Oil Producers led by OPEC has refused to increase production
and this would support prices. Read here
We will see some correction and profit booking
rally today but overall trend for Crude Oil is positive
Buying on dips would be a great strategy for Crude Oil.
2 Comments
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