Commodity Call: Natural Gas to remain bullish above Rs 258

oil_30The MCX Natural Gas December futures is trading in a bullish trend in the last 13 trading sessions.

The commodity remains strong as its its trading above 20-DMA (Rs 239), 50-DMA (Rs 231) and 200-DMA (Rs 225). Natural Gas is trading near the higher end of the Bollinger Band.

The MACD (Moving Average Convergence-Divergence) is also in the favor of bulls.

However, the RSI (Relative Strength Index) and the Stochastic Slow are in over-bought zones. Further, the ADX (Average Directional Index) is in oversold zones.

Hence, the commodity may witness profit-taking in the near future.

Technically, if the commodity slips below Rs 258-odd levels, the counter may witness profit taking. Hence, one should keep a close eye on Rs 258.

In case of profit-taking Natural Gas futures can decline to Rs 247-odd levels.

Yesterday, the open interest in the counter has risen by 2,297 lots from 16,521 to 18,818.

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