MCX Natural Gas likely to test new highs; key levels for MCX Crude Oil

The MCX Natural Gas futures may test Rs 704 as indicated on the daily charts; the bias for the remainder of the week is likely to remain bullish as long as Natural Gas sustains above Rs 673.

Crude Oil

Bias: Positive

Last close: 8,521

Support: Rs 8,365

Resistance: Rs 8,950

The MCX Crude Oil futures are likely to trade with a positive bias as the commodity consistently sustains above its key short-term moving averages. The 20-DMA (Daily Moving Average) for Crude Oil futures is placed at Rs 8,365-odd level, which is likely to act as an immediate support, below which the 50-DMA stands at Rs 8,070-odd level.

The daily charts indicate that sustained trade above the 20-DMA can potentially trigger an upmove towards the higher-end of the Bollinger Band, indicating a target of Rs 8,950 for the commodity. 

According to the weekly Fibonacci chart, the MCX Crude prices so far seem to be testing support around Rs 8,445, below which the next major support levels are at 8,320, 8,230 and 8,135. On the upside, the nearest resistance for Crude oil is at Rs 8,790, above which the prices can spurt to Rs 8,960 - 9,010 - 9,100.

As per the daily Fibonacci chart, on Wednesday, MCX Crude Oil prices can trade in a broad range or Rs 8,395 to Rs 8,650; with support likely around Rs 8,475 - 8,420; whereas on the upside the commodity may face resistance around Rs 8,600 - 8,650.

Natural Gas

Bias: Positive

Last close: Rs 683.50

Support: Rs 673

The MCX Natural Gas futures seems poised to test new highs in the near term as price action and momentum, both, on the daily and weekly charts are clearly in favour of the bulls. 

The higher-end of the Bollinger Band is at Rs 704, which itself is a new high and might act as a minor hurdle, above which the commodity is likely to trade in unchartered area. Key momentum oscillators on the daily charts like the 14-day RSI (Relative Strength Index), MACD (Moving Average Convergence and Divergence) and the Slow Stochastic are all in favour of the bulls. 

As per the weekly charts, sustained trade above Rs 690-odd level, is likely to give the bulls the required impetus to push prices higher.

According to the weekly Fibonacci chart, Natural Gas has given a breakout above Rs 673 level. The bias for the remainder of the week is likely to remain bullish as long as the commodity trades above the same. On the downside, Rs 647.20 is likely to act as a major support. 

As per the daily Fibonacci chart, the MCX Natural Gas futures on Wednesday may trade in a range of Rs 668.20 to Rs 698.80; with support expected around Rs 678 - 671 and resistance likely around Rs 693 - 696.