Natural Gas gained as a winter storm in the Northeast and Midwest boosted demand for the heating fuel. The commodity reached near to Rs.278 yesterday. Today the commodity is trading at Rs.275.90 up by 0.88% at 1332 India time.
We are expecting that the commodity may fall from this level .It is a good to take short position as there is strong resistance at the price of Rs.277.83. We are expecting that Natural Gas may fall to the price of Rs.273.3 today.
RSI is showing that the commodity is oversold at present level. It is expected to break the support of moving average line. Till the week end the commodity may fall by 5.56% from the present high or to Rs.267.77 below it we may see continuous down trend.
On Thursday Energy Information Administration will release Natural Gas inventory data that is expected to fall by 112 billion cubic feet from earlier 287 bcf. Increase in inventory may not support the commodity and bring down the prices.