Natural Gas futures have been under pressure for almost a
month now. Crude Oil prices have been trading in range since past few weeks and
seems like the trend will continue.
Natural Gas and Crude Oil futures - Generatebucks |
Last week most investors who follow Generatebucks made huge
profits because we met all targets. Monday morning targets were also
met and traders who followed day trading tips made great profits.
Looking at NG futures and Crude Oil today, it is clear that
both counters have been following a trend and traders are respecting that
trend. NG futures have become less speculative and have been trading in red as mentioned
last week.
NG futures
NG futures closed at 192.40 yesterday on MCX breaking it
major support at 198. The market was seen breaking support based on the weather
forecast. Warm weather reduced heating days thus decline in consumption of NG.
NG futures in international markets break down through $2.7 gaping down. I
should say we are heavily oversold in this market and I am expecting a rally to
fill the gap. The $2.7 has now become a resistance and $2.5 is a major support
zone.
We are at a stage where any kind of fresh trade will not
make sense but we can expect the market to trade sideways to lower till
Thursday.
I believe buyers will be able to dominate this market at
$2.5 level which would 185-188 at MCX. If you are planning to go long in this counter,
enter this market at 185 for a target of 195 (short-term) with stop loss of
182.
A short really is expected and we can also see futures
trading at 199.
I would always advise an investor to stick to sell on rise
rather than going long since momentum has turned negative. There will be short rallies. Trading against the trend is always risky.
Crude Oil Investing Strategies
Crude Oil prices have rallied in January after US-imposed
sanctions on Venezuela cut supply to a market already hit by falling OPEC
production. The combination of better-than-expected economic data and reduced
supply sent crude oil to a peak
Crude Oil market break the resistance level earlier this
week and now 3800 has been acting a support underneath. I expect Crude Oil to
be bullish for upcoming sessions and would advise investors to go in Crude Oil.
I would suggest to go long in Crude for target of 4100-4150 in upcoming sessions.
We can see a correction after EIA report is released on Wednesday which can
only impact Oil for few trading sessions.
Read Disclaimer before investing
1 Comments
That is interesting to know, thanks for the share
ReplyDeleteLeave your comments below.