MCX Tips For Natural Gas
Trading sentiments are suggesting that If India's MCX natural gas October contract gets closed above Rs.185 on Wednesday, then prices could climb to Rs 195 for coming session according to our research reports. Technically on daily charts, natural gas is still looking positive for an intra-day session. Now strong resistance in natural gas is expected at Rs 186 and support at Rs 178. As the trend is still positive, traders are advised to the take along position in natural gas around Rs 180 with stop loss of Rs 178 for target near Rs 184 and 186. Natural gas on Monday traded on a positive note and closed up by 3% at Rs.181.60 as buying rally continued to lift the heating fuel. Recent weather forecasts have shown cooler-than-normal temperatures expected across most parts of the US in the first two weeks of October.
With a cooler-than-normal weather predicted for the next fortnight, natural gas futures are up on the MCX with the October contract gaining 1.93% at Rs.179.50. The November futures ended on the NYMEX on Friday adding 0.5% to settle at $3.313 per million British thermal units. The contract is up $0.065 at $3.385 as on 1:30:07 AM CT. However, upward risks remain for the trajectory of production in natural gas as the majority of latent supply is due to come online in Q4, said Barclays in a report. Meanwhile, AccuWeather, a US weather service provider has said, for the second week of October, it expected temperatures to cool further with overnight lows slipping to the high 30s and low 40s Fahrenheit range.
