MCX Natural Gas futures has traded in a narrow range of 160.25-167.45 levels week as the formation of ‘Bullish Death Cross’ on daily scale was able to counterpoise the higher than expected natural gas stockpiles revealed by the U.S. Energy Information Administration, as per them the working gas storage was 1,986 Bcf as of Friday, May 31, 2019, that was increased by 119 Bcf (Billions of Cubic Feet Equivalent) more than the expectation of 114 Bcf.
Daily Technical Forecast
The lack of fundamental developments and trading below the major trend forecast of 200 hours Exponential Moving Average is going to held Natural Gas under pressure. On hourly scale, the counter is trading in a ‘Rectangle’ pattern that signals for a squeeze in volatility followed a high volatility after breaking either side. RSI is trading at 46.33 showing a range bound movement while Bollinger Bandwidth is hinting for lower volatility. We are expecting a slippage below the psychological support of 160 levels could bring more weakness while a breakout above 168 levels could lead to more upside.
Weekly Technical Forecast
For next week, we are expecting that Natural Gas futures could back bounce back and a breakout above 170 levels could bring more upside. On daily scale, the counter is trading near the kissing distance of its strong support that is placed at 165.30 levels. Bollinger Bands are showing lower volatility while re-test of the previous lows while Bollinger Bands %b is trading above zero levels.