Natural Gas and Crude Oil Investing techniques – Will be seen trading in a range

Natural Gas and Crude Oil, both energy counters have been performing and are giving traders humongous opportunities to earn profits.

Natural Gas price forecast -
Natural Gas was seen trading at $3.07 yesterday globally and Brent futures were seen trading at $61.

Oil has been steady on hopes of Chinese fiscal stimulus will stem economic slowdown.

Natural Gas price prediction

Natural Gas got hammered yesterday despite the forecast for colder weather. Yesterday Natural Gas was seen trading in red breaking the support line at 225 on MCX. This happened despite the colder weather prediction.

While supply continues to rise, we can expect NG futures to pick up a sideways trend in coming weeks.

Based on technical analysis, Prices tumbled through the 10-day moving average which was former support now resistance seen near 3.24. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

This was an expected move since we has a gap to cover below. Now, we are at extremely low levels and a bounce is expected sooner or later. Consider these any bounce as a selling opportunity for short-term and positional traders. I believe it is only a matter of time when we will encounter an oversupply situation.

If we breakdown till 215 on MCX than we can expect this breakdown further till 210. It is difficult to expect any large upside since NG market is oversupplied based on the demand.

Traders will definitely keep a watch at NG storage report but don’t think that will make much difference.

Intra-day traders can make short profits. Buy Jan NG at 220 for target of 224 with SL of 218. Please adhere to SL since the trend is down and sticking to the buy side could be a risk.

If you plan to hold your position – Sell NG Feb for 223 for target of 214 in upcoming sessions with SL of 229.

Crude Oil price prediction

I expect Crude Oil to trade in a range for upcoming sessions since I don’t see much upside.Read more here

Looking at fundamentals  

  1. Japan December exports slump most in over 2 years
  2. China will increase fiscal stimulus to stem slowdown –officials
  3. OPEC cutting output to rein in oversupply
  4. But rising U.S. output undermines OPEC efforts 

All these will keep Oil prices in a range.I would suggest to sell Crude Oil at 3800 for target of 3680 with stop loss of 3850.

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