Key trading levels to watch out on MCX Crude Oil, Natural Gas futures

The MCX Natural Gas futures are likely to trade with a bullish bias for the remainder of the week as long as prices sustain above Rs 709.50.

Crude Oil

Bias: Positive

Last close: Rs 9,181

Support: Rs 8,800

Resistance: Rs 9,400

The MCX Crude Oil futures have been trading with a positive bias since mid-May. The commodity has since then rallied over 13 per cent from levels of Rs 8,200. 

However, the upmove has been very gradual with Crude Oil prices respecting the resistance around the higher-end of the Bollinger Band on the daily chart, and then retracing and finding support at its 20-DMA. 

The current scenario depicts a similar picture. In the last two trading sessions, Crude Oil futures seem to be facing resistance around the higher-end of the Bolllinger Band placed at Rs 9,400-odd level, and may now dip towards the 20-DMA placed at Rs 8,800-odd level.

As long as Oil prices sustain above the 20-DMA on a closing basis, the bias will continue to remain upbeat, with a possibility of prices rallying to Rs 9,600-level as indicated on the weekly chart.

Accordingly to the weekly Fibonacci chart, the MCX Crude Oil futures so far have gyrated within the near-term support and resistance levels, broadly indicating a trading range of Rs 9,100 to Rs 9,380. A break on the downside, can trigger a fall towards Rs 8,995 - 8,920 - 8,845; Whereas, a break on the upside can trigger a rally towards Rs 9,475 - 9,550 - 9,625.

As per the daily Fibonacci chart, on Wednesday, MCX Crude Oil futures are likely to trade in a range of Rs 9,035 to Rs 9,330; with support likely around Rs 9,130 - 9,090 - 9,060; whereas on the upside the commodity may face resistance around Rs 9,235 - 9,270 - 9,300.

Natural Gas

Bias: Positive

Last close: Rs 722.10

Support: Rs 709.50

The MCX Natural Gas futures has been trading with a bullish bias since the start of the calendar year 2022, and has rallied almost 140 per cent during the period. Since mid-February, the commodity has consistently found support around its 20-DMA on bouts of intermediate corrections.

The bias continues to remain bullish, as the commodity trades firmly above the short-term moving averages, and the price-to-moving average action also reamins favourable. 

Currently, Natural Gas futures are seen testing resistance around the higer-end of the Bollinger Band on the daily chart at Rs 737-odd level, above which the commodity could jump to Rs 747. In case, of an intermediate correction the commodity could dip towards its 20-DMA placed at Rs 660-odd level.

According to the weekly Fibonacci chart, Natural Gas futures have given a strong buy signal. The bias for the remainder of the week is likely to remain bullish as long as the commodity sustains above Rs 709.50-level. On the upside, the commodity could test the monthly Fibonacci resistance placed at Rs 736 - 763 - 790.

On the flip side, in case, support at Rs 709.50 breaks, the MCX Natural Gas futures can dip towards Rs 682.30 - where stronger support is expected. 

As per the daily Fibonacci chart, the MCX Natural Gas futures on Wednesday may trade in a range of Rs 705.70 to Rs 738.50; with support expected around Rs 716.30 - 712 - 708.80 and resistance likely around Rs 728 - 732.30 - 735.40.