Natural Gas and Crude Oil counters have been playing in the market and we have seen range bound trade in both counters. With the tightening news of sanctions on Iran and less production in US, we saw Crude Oil trading higher. As expected, Natural Gas was seen trading at 204 levels on MCX.

Natural Gas Price Chart

Both counters have been giving great results and are expected to follow fundamentals and technical charts.

Natural Gas – Positional and Intraday trades

Yesterday we saw Natural gas trading at 204 levels on MCX but there was not much movement in international market. We can expected sellers to dominate soon in this market. An important thing to observe is that buyers jump in to support to market at 199-200 levels and this trend will continue till the winter season.

As per the technical analyst and fundamentals, 200 on MCX is a very good level for a positional trader to enter the market. Natural Gas market is expected to see a strong deficit early winter season and supply might not able to meet demand. There is a huge chance that we could see Natural Gas market to trade around 225 levels in late October

Looking at Intraday, I would suggest to initiate a Long position at 203.50 for target of 207 in upcoming sessions. Enter market with strict SL of 200.

Natural gas has been trading in a range and every dip would be a good buying opportunity for positional trade. I expect prices of Natural Gas to touch 225 in first week of November.

Crude Oil

Crude Oil counter currently is quite uncertain till 1st November when US sanctions on Iran will be effective. Crude Oil market will trade in a range. There is always a short term trade which can be profitable.
For short term traders, I would suggest along position at 4880 for target of 4940 and SL of 4850. High risk traders can also wait for 5010.

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