Natural gas December contract closed at 258.50 up by 5.10 rupees. Natural gas December contract is now trading near life time high and bulls are still powerful in this commodity. Immediate support is now seen near 252 any sustained move below that level may bring a retest to 247-245 zones. Key support would remain at 242 zones. Resistance is now seen near 259 any sustained move above that level would bring 270 and more upside.
Trading range for the day is expected among the key support at 250 and resistance at 270.
* Today buying natural gas on declines around 250-252 with stop loss below 243 for targeting 257-261 and more upside might be appropriate.
* In alternative scenario buying above 259 with stop loss below 256 for targeting 262-270 and more upside.
* Selling below 243 with stop loss above 247 for targeting 237 and more down side might be appropriate.
Kindly note that our ultimate target for natural is 274-280 zones commodity is still looking bullish and now trailing stop loss can be used at 242 for long term trade.
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