Natural Gas and Crude Oil trading strategies 10th September –

Natural Gas and Crude Oil markets have been quite volatile and we can expect volatility to continue this week. Crude Oil touched record high numbers in previous trading sessions while Natural Gas have been trading in a range.

Looking at trading strategies this week, it is evident that both counters are trading based on their own fundamentals. We will definitely see a spike in both counters since Indian Rupee has been trading on record high levels.

Natural Gas

Natural Gas markets are still dominated by sellers, thus we are unable to see a push from buyers beyond 209 on MCX. With demand meeting the supply in US, it is evident that we might not see a rally in this counter.

Based on the last EIA report, the production was slightly higher than expected and we saw the impact on the prices. The sellers were back and we saw 199 levels at MCX. As mentioned last week, prices will be testing support levels, the prices did rebound and they are expected to rally to 210 in coming session.

There is high possibility that this time buyer might be able to push the resistance level because EIA report clearly depicts decline in storage when compared to the five year average. There is no doubt that we will see huge deficit in natural gas production during winter session.

For this week, I would definitely suggest a long position for upcoming trading sessions. Initiate a buy at 200.50 for target of 203-205-207 in upcoming sessions with strict stop loss of 198.

Although, we might not even witness 198 but in case we do we can expect prices to go to 194.

Crude Oil Price

Crude Oil

As mentioned earlier, Crude Oil prices have formed a range and we can expect prices to move in a range. With productions stalling in US and sanctions on Iran, Crude is expected to rally this week. Read more 

If you are holding a short position than hold your position since there is a high chance, we might see Crude again at 4800.

For Intraday, I would advise a buy position. Initiate a buy on dips around 4930 for target of 4980 and SL of 4910.

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