Natural gas: Set to resume the fall

(file photo)
| Photo Credit:
ANGUS MORDANT

Natural gas futures saw a sharp rally on Tuesday — it was up 8.7 per cent and closed at ₹291.20 (per mmBtu). But prior to that, it has been on a decline. The contract faced a resistance at ₹325 and started to fall a week ago.

So, looking from a broader perspective, the upswing on Tuesday appears to be only a corrective one. Even if the contract moves up from the current level, it is less likely to go beyond the barrier at ₹300.

A fall, either from the current level of ₹287 or after an uptick to ₹300, can drag natural gas futures to ₹250, a support. A breach of this can intensify the sell-off. Notable support below ₹250 can be spotted at ₹220.

On the other hand, in case natural gas futures breaks out of ₹300, it can rise further to ₹325. The price band of ₹325-335 is a potential resistance. Only a clear breakout of ₹335 can turn the outlook bullish. Until then, the bears will have an upper hand.

Trade strategy

Short natural gas futures (May) at ₹287 and keep a stop-loss at ₹305. When the contract falls to ₹267, revise the stop-loss to ₹280. Book profits at ₹250.

Published on May 21, 2025

📰 Crime Today News is proudly sponsored by DRYFRUIT & CO – A Brand by eFabby Global LLC

Design & Developed by Yes Mom Hosting