Natural gas futures: Stay cautiously bullish by admin- Friday, August 6th, 2021 07:45:03 AM
The non-stop agreement of herbal fuel found support at ₹180. It went up in February this 12 months and touched ₹240. But it reversed the route and fell returned once more to ₹one hundred eighty by using mid-March.
However, after a quick length of consolidation in a tight range i.E., between ₹a hundred and eighty and ₹195, the contract started rallying in April.
This time, the bulls have been more potent taking the futures above the resistance of ₹240 in June. Post the breakout, the rally won momentum and even though it bogged down final week, consumers persevered to push the price upwards.
Consequently, the contract broke out of ₹three hundred-mark and closed at about ₹310 on Wednesday.
Signs of caution
Thus, the rate movement has made a clean high and considering April, the contract has been constantly making better highs and higher lows. This is a bullish sign. Also, the agreement has been rebounding from the 21-day moving average every time there has been a rate correction. Hence, the fee movement is hinting at further rally. But there are some signs and symptoms of warning.
The relative electricity index (RSI) and the transferring common convergence divergence (MACD), though last inside the bullish area, are displaying symptoms of a bearish divergence.
Traders may be bullish following the present day breakout, but ought to preserve a tight stop-loss for sparkling lengthy positions. On the upside, the contract can appreciate to ₹322.