Price Recovery Faces Key ₹270 Resistance
Key Highlights
- Natural gas futures gained a little over 3 per cent last week.
- The August futures contract faced stiff resistance around ₹270.
- Prices weakened during the second half of last week after failing to break the resistance.
- Technical indicators suggest a clear bearish bias in the near term.
- A recovery from current levels could again face resistance at ₹270.
- A decisive breakout above ₹270 would improve the outlook.
- The contract could rise toward ₹285 if the resistance is breached.
- The ₹285-₹290 range is expected to act as another major resistance zone.
- Traders may consider selling August futures if prices move up to ₹258.
Chennai, August 18: Natural gas futures gained a little over 3 per cent last week, but the contract continues to face technical pressure after failing to move above a key resistance level.
The August natural gas futures contract encountered stiff resistance near ₹270 and slipped during the second half of last week, indicating that sellers remain active around higher levels.
The contract has since weakened, with the technical outlook continuing to indicate a bearish bias in the near term.
₹270 remains crucial resistance
A recovery in natural gas futures from current levels is likely to face a significant barrier around ₹270.
As long as the contract remains below this level, the broader technical outlook is expected to remain weak.
A decisive breakout above ₹270, however, could change the short-term trend and provide fresh momentum to the contract.
In such a scenario, natural gas futures could potentially rise toward ₹285, based on the technical outlook.
₹285-₹290 another resistance zone
Even if the contract manages to cross ₹270, further gains may not come easily.
The ₹285-₹290 range represents another important resistance zone and could attract renewed selling pressure.
This means a sustained bullish move would require the contract to overcome multiple technical barriers.
Until that happens, the prevailing trend continues to favour a cautious to bearish approach.
August contract shows bearish bias
The August futures contract faced stiff resistance at ₹270 before declining during the latter half of last week.
The price of the contract dropped further on Monday, reinforcing the weak technical footing.
Price action currently suggests a clear bearish bias, making any recovery toward resistance levels important for short-term traders to watch.
Trade strategy
Based on the prevailing technical setup, traders can consider selling natural gas August futures if the price moves up to ₹258.
The suggested target is ₹238, while the stop-loss can be placed at ₹270.
The strategy reflects expectations that a recovery could encounter selling pressure before the contract is able to challenge its major resistance levels.
As with commodity futures trading, movements in global natural gas prices, supply-demand conditions, weather patterns and broader energy-market developments can influence domestic contracts and lead to sharp price fluctuations.
