Gas futures on the Multi Product Exchange (MCX) have actually been rallying for the previous number of weeks. The constant agreement has actually rebounded from the assistance at 175 and is now trading near 195.
More rally from the existing levels is less most likely as 200-210 is a strong difficulty. In addition, the 50-day moving typical resistance likewise lies at 200, making it a considerable barrier for the bulls to cross. For that reason, the opportunities of a fall from here looks high.
The agreement can possibly decrease to 175. A breach of this assistance can heighten the sell-off, causing a possible fall to 150.
On the other hand, if the agreement handles to go beyond the resistance at 210, it can increase to 225 rapidly. Nevertheless, the opportunities of a rally previous 210 looks slim in the meantime.
Trade technique.
Go brief on gas futures at the existing level of 195. Include more shorts if the agreement goes up to 206. Location stop-loss at 215 at first.
When the agreement falls listed below 185, tighten up the stop-loss to 195. Reserve earnings at 175.
.