Natural Gas and Crude Oil, both energy counters have been
performing and are giving traders humongous opportunities to earn profits.
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| Natural Gas price forecast - Generatebucks.com |
Natural Gas was seen trading at $3.07 yesterday globally and
Brent futures were seen trading at $61.
Oil has been steady on hopes of Chinese fiscal stimulus will
stem economic slowdown.
Natural Gas price prediction
Natural Gas got hammered yesterday despite the forecast for
colder weather. Yesterday Natural Gas was seen trading in red breaking the
support line at 225 on MCX. This happened despite the colder weather
prediction.
While supply continues to rise, we can expect NG futures to
pick up a sideways trend in coming weeks.
Based on technical analysis, Prices tumbled through the
10-day moving average which was former support now resistance seen near 3.24. Short-term
momentum has turned negative as the fast stochastic generated a crossover sell
signal.
This was an expected move since we has a gap to cover below.
Now, we are at extremely low levels and a bounce is expected sooner or later.
Consider these any bounce as a selling opportunity for short-term and
positional traders. I believe it is only a matter of time when we will
encounter an oversupply situation.
If we breakdown till 215 on MCX than we can expect this
breakdown further till 210. It is difficult to expect any large upside since NG
market is oversupplied based on the demand.
Traders will definitely keep a watch at NG storage report
but don’t think that will make much difference.
Intra-day traders can make short profits. Buy Jan NG at 220
for target of 224 with SL of 218. Please adhere to SL since the trend is down
and sticking to the buy side could be a risk.
If you plan to hold your position – Sell NG Feb for 223 for
target of 214 in upcoming sessions with SL of 229.
Crude Oil price prediction
I expect Crude Oil to trade in a range for upcoming sessions
since I don’t see much upside.Read more here
Looking at fundamentals
- Japan December exports slump most in over 2 years
- China will increase fiscal stimulus to stem slowdown –officials
- OPEC cutting output to rein in oversupply
- But rising U.S. output undermines OPEC efforts
All these will keep Oil prices in a range.I would suggest to sell Crude Oil at 3800 for target of 3680
with stop loss of 3850.
