Indian Natural Gas prices, Natural Gas price in India, Natural Gas MCX Trading Calls, Natural Gas tips, Natural Gas MCX Calls
Natural Gas prices on MCX are hovering between 215 and 230 for almost 2.5 months now, after it made a high of 257.10 on 4 September 2013.
Natural Gas enthusiast think natural gas are in for a big ride up. But it is not so convincingly.
Even rupee slide did not helped the natural gas price to go past 260 and reach close to 300.
Tradign speculation at time could do this if the prices sustain above 240 for few weeks, otherwise not.
We recommend to buy and trade but do not hold for beyond breakout gains. Book out around 240.
If you want to ride on then wait for conviction trade on long side above 240 when it once makes new high above 257.10 and then builds base around 240 with time lag. Then and then only we can start building up long position for a target of first 272 and then 300 eventually. We beiliev the run up to 300, if happens as described, should be accompanies by rupee depreciation as well and not just backed by rise in natural gas price in dollar terms.
Having said all of the above, we find better conviction trade on short side. We believe that the prices will collapse below 200 (of course it will take support at 205 levels). We will initiate short trade once natural gas tries to break resistance level around 240 and fails and start falling. We will not wait a bit to short. In that scenario first target will be 215 levels. Then 205 and lower. However, natural gas has been a commodity which remain in a narrow range for a long time and range-expansion (as in Dows Concept of range-expansion and range-contraction) takes less time.
The range-contraction phase does not allow more than 5% return, while range-expansion phase allows 5-35% return and average return of 10% which a positional trade following 'averaging up' or 'inverse pyramiding' technique of trading can reasonable accept.
Natural Gas prices on MCX are hovering between 215 and 230 for almost 2.5 months now, after it made a high of 257.10 on 4 September 2013.
Natural Gas enthusiast think natural gas are in for a big ride up. But it is not so convincingly.
Even rupee slide did not helped the natural gas price to go past 260 and reach close to 300.
Tradign speculation at time could do this if the prices sustain above 240 for few weeks, otherwise not.
We recommend to buy and trade but do not hold for beyond breakout gains. Book out around 240.
If you want to ride on then wait for conviction trade on long side above 240 when it once makes new high above 257.10 and then builds base around 240 with time lag. Then and then only we can start building up long position for a target of first 272 and then 300 eventually. We beiliev the run up to 300, if happens as described, should be accompanies by rupee depreciation as well and not just backed by rise in natural gas price in dollar terms.
Having said all of the above, we find better conviction trade on short side. We believe that the prices will collapse below 200 (of course it will take support at 205 levels). We will initiate short trade once natural gas tries to break resistance level around 240 and fails and start falling. We will not wait a bit to short. In that scenario first target will be 215 levels. Then 205 and lower. However, natural gas has been a commodity which remain in a narrow range for a long time and range-expansion (as in Dows Concept of range-expansion and range-contraction) takes less time.
The range-contraction phase does not allow more than 5% return, while range-expansion phase allows 5-35% return and average return of 10% which a positional trade following 'averaging up' or 'inverse pyramiding' technique of trading can reasonable accept.
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