Technical Outlook & Trading Strategy:-
We reiterate our bearish outlook on the price of Natural gas. The price of Natural Gas witnessed a sharp sell- off from the highs of Rs 223.50 levels as on 09th June, 2011.
The price of Natural Gas has also closed below the lower end of the rising channel on the daily charts which had been forming since 04th Mar, 2011.
This is a very bearish signal since this lower end of the rising channel had been providing good support for the price of Natural gas on corrections.
The indicators at present are extremely oversold and we expect the prices to pull back towards the Rs 192—Rs 193.50 levels.
Traders can look to sell on pullbacks between Rs 192--Rs 194 levels with a stop loss of Rs 195.90 levels for downside targets of Rs 188 / Rs 185 levels.
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