Natural gas futures has been charting a sideways trend for about two weeks now. The February contract is now trading at ₹289 (per mmBtu).
The chart shows there is a strong support at ₹260 which can arrest the decline. The price action shows that natural gas futures formed a bullish engulfing candlestick pattern on Friday, indicating that the bulls are gaining traction.
While there is a hurdle ahead at ₹300, we expect the contract to eventually get past this level. Even if there is no bullish trend reversal, the natural gas futures can witness a corrective rally to ₹350.
That said, if the support at ₹260 is breached, bears can gain considerable traction, potentially dragging natural gas futures to ₹235. The downswing might extend to ₹200.
Trade strategy
On February 11, we suggested buying February futures (now at ₹289) at ₹280. Since this contract will expire on Tuesday (February 24), traders can roll over the longs to March contract (currently at ₹282). That is, exit February futures long now and immediately buy March futures.
Add longs if the price dips to ₹260. Place stop-loss at ₹238. On a rally to ₹320, revise the stop-loss to ₹290. Book profits at ₹350.
Published on February 23, 2026
