Natural Gas Futures: Lost 7% this week, hovering around ₹303 per mmBtu

Natural gas futures has lost about 7 per cent so far this week and is currently hovering around ₹303 per mmBtu. That said, the chart shows that it has been charting a horizontal trend recently.

The June natural gas futures has been fluctuating between ₹296 and ₹330 for nearly a month. Early this week, the contract fell off the resistance at ₹330. Note that a falling trendline and the 50-day moving average coincide at ₹330, making it a strong barrier.

In case the current decline leads to natural gas slipping below the support at ₹296, the outlook can turn bearish. In this case, the contract can drop to ₹270 and ₹250, notable support levels.

On the other hand, if the contract recovers and breaks out of ₹330, there is a resistance immediately at ₹350. A breach of this can lift the contract to ₹385.

Broadly, natural gas futures continues to stay in a sideways band but it is now showing some bearish bias.