Bearish Bias Continues for Natural Gas Futures
Natural gas futures have been on a decline over the past month, indicating a bearish bias that may persist. The August contract has breached its support at ₹272 and marked a low of ₹254.10 last Tuesday.
Despite remaining flat since then, the price is below both the 21- and 50-day moving averages, showing no signs of a bullish trend reversal. The level of ₹272 will act as resistance, making it difficult for prices to rise above this point.
According to market analysis, if natural gas futures continue to decline, they may reach ₹255 soon. A breach of this support could lead to further price drops, potentially reaching ₹250.
On the other hand, if the contract rallies and surpasses the barrier at ₹272, it might strengthen to ₹290. However, this outcome is less likely given the current market conditions.