The price rise has been sharp where the contract gained nearly 12 per cent last week
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Natural gas futures, which have been on a decline since mid-June, rebounded last week. The September contract bounced off the support at ₹230 (per mmBtu) early last week. It is now trading at ₹268.Â
The price rise has been sharp where the contract gained nearly 12 per cent last week. Also, the weekly chart shows that natural gas futures has formed a bullish engulfing candlestick pattern. These are signs of a bullish reversal.
However, the chart shows that natural gas futures is facing a resistance at ₹285, where the 50-day moving average coincides. While there might not be a revival in bear trend on the back of this, the contract could see a corrective dip in price.
An eventual breakout of ₹285 can lift the price to ₹325, a barrier. A breakout ₹325 can take it higher to ₹365.Â
On the other hand, if the price starts falling and natural gas futures slip below the support at ₹250, it will open the doors for bear dominance. Notable supports below ₹250 are at ₹220 and ₹200.
Trade strategy
Go long on natural gas futures at ₹268 and place a stop-loss at ₹250. When the contract rises above ₹285, revise the stop-loss to ₹270. Book profits at ₹325.
Published on September 3, 2025
