Intraday tips for Natural Gas and Crude Oil –

Natural Gas followed a downside trend on Tuesday and as expected sellers were dominant in the market. Natural gas markets have been consolidated for quite some time now and have been range- bound.

Looking at MCX exchange, Natural Gas hovers from 193 to 208 and this is expected to stay around till there is a huge demand and supply concerns.

Looking at the weather reports and production, natural gas will follow bearish trend and this is expected to remain like this till mid-October.

Overall with trends and without weather disruptions this market is a safe bet for sellers. Oversupply situations has been acting as a major resistance and we don’t see big rallies in this market.

Bearish trend will continue with some short rallies would act as entry gate for Natural Gas sellers.

Weather is US is likely to get hotter or colder and demand of the Natural Gas might not be high in coming few months. Brings on selling side will be beneficial for an investor.

For Intraday and long term traders any upside should be selling opportunity. Natural Gas will follow a downside trend.

Sell Natural Gas at 201.50 for target of 199 – 197 with SL of 204. For positional traders, I expect Natural Gas prices to move down to 195-193

Based on the current trends and news, most traders are not expecting things to change after the release of the storage reports tomorrow. Positional traders should keep a watch on EIA report and continue their positions based on the storage

Crude Oil forecast

Crude Oil market have been also trading in a range and would continue to do so. Most investors are looking ahead, meeting of OPEC + Joint Technical committee.

For recent Crude Oil news, click here 

Sanctions on Iran and slowdown of productions are still cause of concerns in this this market. Expectation of supply concerns are supporting the prices but there is strong resistance as well on the upside.

As mentioned earlier on Monday, we did see jump in Crude Oil prices. For investors looking to make profits buying Crude Oil should be the strategy.

Initiate buy positions at 4840 with target of 4870 and SL of 4820. We are expecting Crude Oil inventories to release today which might determine the trend.

With decline in Rupee prices may vary and we might see new highs.

Post a comment