Natural Gas MCX: Buy
Entry price : 114 - 120
Stoploss: 109
Target : 156
Time period : 1 month
The Natural Gas Future on MCX has been in constant down trend since last month.
The weekly trading range of the commodity has been as much as 30 points (20% upside and downside).
Since, the trading range has become large, it is more important to see the weekly chart.
On the weekly chart, we can see a formation of TWO INSIDE DOWN which is a bearish pattern.
If the MCX future closes below 125 on Friday, the bearish pattern would be confirmed.
On Monday, if it trades below Friday Close, a double digit rate for the commodity.
However, the most important level for the commodity is 119. The momentum indicators like StockRSI and RSI suggest a highly oversold zone. Even the MACD on monthly chart suggests a oversold position.
As the commodity is trading near its previous bottom, the risk-reward seems to be favorable for a long position. Yes, a stoploss of 109 is must for the position. The target can be expected for a period of 1 month to Rs.156.
Entry price : 114 - 120
Stoploss: 109
Target : 156
Time period : 1 month
The Natural Gas Future on MCX has been in constant down trend since last month.
Since, the trading range has become large, it is more important to see the weekly chart.
On the weekly chart, we can see a formation of TWO INSIDE DOWN which is a bearish pattern.
If the MCX future closes below 125 on Friday, the bearish pattern would be confirmed.
On Monday, if it trades below Friday Close, a double digit rate for the commodity.
However, the most important level for the commodity is 119. The momentum indicators like StockRSI and RSI suggest a highly oversold zone. Even the MACD on monthly chart suggests a oversold position.
As the commodity is trading near its previous bottom, the risk-reward seems to be favorable for a long position. Yes, a stoploss of 109 is must for the position. The target can be expected for a period of 1 month to Rs.156.
Sheetalpuri Goswami
+919879028295
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