Natural Gas Futures Breakout: Key Levels to Watch Above 250 INR

14 Nov

This chart shows the weekly price action for Natural Gas Futures on the MCX (Multi Commodity Exchange) with some key technical indicators:

Analysis:

• Trendline Breakout: The price has successfully broken out of the symmetrical triangle, signaling a potential bullish reversal. A breakout from this pattern often leads to further upward movement, especially if it’s supported by strong volume.
  
• Key Resistance Levels: With the price near 250, it’s approaching the next resistance levels at approximately 254 and 278. If these levels are surpassed, the next target could be around 305 INR/MMBtu.
  
• Volume Confirmation: The volume is relatively strong, adding credibility to the breakout. A sustained increase in volume would reinforce the bullish outlook.
  

Trade Plan for Natural Gas Futures:

• Entry:
• Enter around 250 INR after the breakout confirmation.
  
• Targets:
• Target 1: 278 INR
  
• Target 2: 305 INR
  
• Stop Loss:
• Set a stop loss below 240 INR to limit downside risk.
  
• Risk Management:
• Consider booking partial profits at 278 INR and trail stop to breakeven.
  

This trade plan is built on the breakout with targets at 278 INR and 305 INR, while managing risk with a stop loss below 240 INR. Watch for volume to confirm momentum, and adjust your stop or book profits as key levels are reached.