Sell natural gas below Rs 145; SL Rs 151: Way2Wealth

Way2Wealth has come out with its report on gold, natural gas, copper, nickel, soya oil and maize. According to the research firm, one can sell natural gas below Rs 145 for a target of Rs 131 with a stoploss of Rs 151.

Spot Gold is still hovering inside the medium-term rising channel and uptrend is still intact. Rebound from $1563/oz is in progress and the bias remains on the upside. $1780 levels are immediate objective on the higher side, on a convincing close above the same will add more momentum on the upside. Key momentum indicators RSI-14 period is pointing in positive zone and the long term momentum indicator MACD also trading above signal line, supporting our view. Candlestick/chart pattern: Action Entry Target Stop

Natural Gas has developed a “Bearish Head & Shoulder” chart pattern on daily continuation charts which signifies for a trend reversal on short-term. According to the pattern 145 levels is a neckline support on the down, on a sustainable close below the same will intact the bearishness and extend the decline towards the next support of 131 level (also coincides with 61.8% Fibonacci level of the previous rally). RSI (14) and MACD both are placed in negative zone. Action Entry Target Stop

MCX Nov Copper’s uptrend is intact and it reached to as high as 450.60 last week. Initial bias remains bullish and further rally is expected towards 161.8% projection of 481 levels, meanwhile 466 (previous swing highs) levels will act as an immediate target on higher side. On daily chart’s the momentum indictor RSI-14 day period has placed in positive territory by given an upside crossover. Candlestick/chart pattern: - Action Entry Target Stop

MCX Sep Nickel; a perfect text book “Bullish H & S” pattern is forming and the neck-line level is pegged around 915 levels, on a decisive break and sustain above the same will confirm the short-term bottoming and intact the bullish momentum for the near-term perspective. Key momentum indicator RSI-14 period and the long term indicator MACD both are placed in positive territory, supporting the view.

NCDEX Soya oil prices rose to as high as 813 last week before making a temporary top there and turned into sideways to lower. Initial bias remains weak and further decline is expected towards the next support of 764 levels, on a convincing close below the same will confirm, that short-term topping has been formed and intact the bearish momentum. On daily charts, RSI has given a down crossover & short-term EMA’S 10 & 20 days also supporting the bearish view.

NCDEX Sep Maize futures are likely to continue its bearish trend by forming “lower tops and lower bottoms” from last couple of weeks. Also we can observe from the chart that Maize prices are traveling through the “descending channel”, which signifies strength of the bearish trend and it would be intact until the breach of channel levels. On daily chart; RSI-14 period has pointing in negative territory, by supporting the bearish momentum.

Strategy:

Buy Spot gold Above Rs  32,005,  target Rs 32,475-32,475, stoploss Rs 31770 .

Sell natural gas Below Rs 145 for a target of Rs  131 and keep a stoploss of 151  

Buy capper at Rs  445, target Rs 460 and stoploss is Rs 438  

Buy nickel Above Rs 915*, target of  Rs 970 and stoploss of Rs 887.

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 

Read More