Gas futures on the Multi Product Exchange (MCX) dealt with a sharp fall in rate in between early November and mid-December. However over the previous 2 weeks, the agreement has actually mostly been combining.
The January expiry gas futures has actually been oscillating in between 195 and 212. A sideways pattern after the sharp decrease represents bears losing traction. While this does not indicate a bullish turnaround, extended debt consolidation increases the possibilities of a restorative rally.
If there’s an increase from here, then the agreement can rally to 235, a resistance. Subsequent resistance is at 250. On the other hand, if gas futures decreases listed below 195, there is assistance instantly at 185. Listed below this the assistance is at 165.
Although healing appears likely, gas futures must go beyond the barrier at 212 to develop a rally. So we advise remaining on the fence in the meantime and start longs if the agreement rallies previous 212. Location preliminary stop-loss at 194.
When the agreement touches 235, tighten up the stop-loss to 220. Schedule earnings at 245.