Buy MCX Natural Gas only above Rs 219: Way2Wealth
Way2Wealth has come out with its report on MCX Natural Gas, silver, Aluminium and Zinc. According to the research firm, one needs to be cautious in MCX Natural Gas right now on long side. Any fresh positions on long side from hereon should be above Rs 219 levels only.
March 25, 2013 / 14:46 IST
Way2Wealth has come out with its report on MCX Natural Gas, silver, Aluminium and Zinc. According to the research firm, one needs to be cautious in MCX Natural Gas right now on long side. Any fresh positions on long side from hereon should be above Rs 219 levels only.
MCX Natural Gas has formed a bullish head and shoulders pattern and the breakout of the same will be confirmed above 219 levels, hence, the positional traders can initiate longs above 219 for the upside targets of 232 and 242 on immediate basis. However, till it doesn’t surpass the swing high of 219 there is a probability that it retraces some of it gains and falls back to 208 to 195 levels. Hence, one needs to be cautious right now on long side. Any fresh positions on long side from hereon should be above Rs 219 levels only.MCX silver continues to trade in a narrow band of 55500 to 53890 since couple of weeks now which is very much reflected by the Bollinger bands which have narrowed a lot. At present silver is trading near the downtrend line resistance failing to surpass it can get it back to the lower end of the channel i.e. 50500 levels, hence one needs to be quite cautious on long side from hereon. The sell signal will be triggered below 53890 levels only, hence till it is trading in a range the positional traders should avoid any positions, whereas the momentum traders can sell around higher end and buy around lower end. Above 55500 it will clearly provide a breakout on the upside which can then take prices till Rs 58360 to Rs 59000 levels.MCX Aluminium has formed a bullish hammer candlestick pattern on the weekly charts which is quite a positive sign for the bulls going forward. Now, 102.80 becomes a medium term support and a bounce back till 38.2 percent to 50 percent retracement level is expected i.e. till 108 to 109.50 levels respectively. The daily MACD has formed a double bottom kind of a pattern and it has come well into buy mode.MCX Zinc has provided a classic breakout from the downward sloping parallel channel which is quite positive for the bulls in the short term. It has posted a positive weekly close after four consecutive negative close which increases the probability of a bounce back till 388.2 percent to 50 percent retracement level which are 108.90 to 110.80 levels respectively. The support on the lower side is now pegged at 103.50 and below that 102.40 levels.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report click on the attachment 
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