Natural gas futures has been in a downtrend for over two months now. The September contract is currently trading at around ₹245 (per mmBtu). The latest leg of fall began in mid-July on the back of the resistance at ₹320.
The price action shows that the bears retain strength and further decline in price is highly likely. Given the current momentum, we expect natural gas futures to decline to ₹220 in the short-term. Notable support levels below ₹220 are at ₹200 and ₹180.
Any uptick in price from the current level of ₹245 is likely to be capped at ₹250, a resistance. Subsequent barrier is at ₹265, its 21-day moving average. Only a decisive breakout of ₹265 can turn the outlook positive. Key resistance levels above ₹265 are at ₹285 and ₹300.
As it stands, the bear trend remains true and natural gas futures can continue to decline from the current level of ₹245 itself or after moving up to ₹250. Thus, traders can consider short positions.
Trade strategy
Short natural gas futures at ₹245 and place a stop-loss at ₹252. When the contract declines to ₹230, revise the stop-loss to ₹240. Book profits at ₹220.
Published on August 27, 2025
