Natural gas July contract closed at 253.50 down by 8.70 rupees. Natural gas has witnessed a nice decline after failure of 259 and headed an intraday low of 252.80 breaching key support of 253 that was placed in april 2014. Failure of 253 hints a possible retest to 245 zones. Stochastic has reached in oversold territory that may prevent fresh bearish to jump in and commodity may witness temporary recovery. Resistance is now seen near 262 any sustained move above that level may bring some charm and then we may see a retest 265-270 zones.
Natural Gas trading range for the day is expected among the key support at 252 and resistance at 263.
Â· Today again selling natural gas on jumps around 259-260 with stop loss above 263 for targeting 252-248 and more down side might be appropriate.
Â· In alternative scenario selling below 252 with stop loss above 255 for targeting 249-246 might be appropriate.
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