MCX Natural Gas to halt its rally

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MCX Natural Gas has surged more than 60% from the bottom of 114 levels. It made a high of 165 in the month of January 2016. From the below daily chart, prices were moving precisely in a rising channel which is broken today giving an indication that the upside rally will halt.

Break of rising channel opens bearish possibilities, as the support of the channel is at 159, Nat Gas is expected to shed gains. Currently prices are quoting at 155 levels. RSI on daily chart has exhibited negative divergence which is an indication that the positive momentum is slowing down. Please note that the larger trend continues to be positive as of now.

From waves perspective, prices moved in an impulse fashion from 114 till 165 levels. After five wave structure, prices are tend to correct which is termed as counter wave. The counter wave will be a three wave structure (a-b-c) and can move in a range of 146-150 levels.

In short, expect prices to fall  till 146 levels going ahead.

MCX Natural Gas Daily Chart 1st month contract


Comments

Phani Kumar said…
Hey, thanks for the information. your post s are informative and useful.
Index of Industrial Production
5 August 2020 at 14:29
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