Natural gas futures, which has been on a rally for nearly three weeks, is currently trading at ₹308.30 (per mmBtu).
The upswing started on the back of the support at ₹274 and this has taken it above the neck level of the double bottom chart pattern at ₹300. This chart set up indicates a bullish trend reversal.
Substantiating the positive outlook, the price of the contract has risen above both 21- and 50-day moving averages.
While the double-bottom chart set up hints at a rally to ₹325, given the current momentum, we expect natural gas futures to touch ₹350 in the near-term.
On the other hand, if the contract falls and slips below the support at ₹300, there is a support immediately at ₹290. A breach of the ₹290 can lead to a deeper fall, probably to ₹274, the nearest notable support.
Overall, the price action appears bullish, and traders can consider long positions.
Trade strategy
Buy natural gas futures (October) now at ₹308 and accumulate at ₹295. Place initial stop-loss at ₹282. When the contract touches ₹325, revise the stop-loss to ₹310. When the price hits ₹335, tighten the stop-loss further to ₹328. Exit at ₹340.
Published on October 3, 2025
