Crude Oil and Natural Gas counters have been trading based on fundamentals. Both counters were seen trading higher last week and this week we see a different trend.

Natural Gas and Crude Oil

Crude Oil Prices were seen trading higher yesterday and trend seems to change today. Looking at the market yesterday, we saw a spike in Asian market based on concerns about hurricane in the Gulf of Mexico. As expected, we saw a slightly reverse trend today.

Looking at WTI and other markets, Crude Oil is quite volatile and increase in prices had a negative impact on INR. We saw a sharp fall in Indian Rupee in today’s trading sessions.

I expect a slight decline from here for Crude and we might not see Crude Oil prices taking a bigger jump. Prices will be seen again trading higher in upcoming sessions on MCX at around 5100 but we would see a strong resistance on upside.

Overall, Crude Oil prices will trade lower today and we could see some profit booking. Fundamentals are still strong and I would suggest buying on dips for short-term trader.
For intraday, a short position would be beneficial.

We can expect production to go up in September, based on a recent survey done “OPEC August production was higher than expectations” Read more


Natural Gas prices

Unlike other commodities, Natural Gas has been trading in range bound for quite some time and we see investors trading quite comfortably in this market.

International prices are following bearish trend and this was expected. Trend might change and buyers can dominate the market if EIA reports are supportive.

At MCX, prices were seen trading higher, due to decline in Rupee but fundamentals are negative. Looking at intraday, I would suggest a short trade. Follow a sell on rise strategy and make profits.

Enter into short position at 203 with target of 201.50 and SL of 205.

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