MCX Natural Gas Keep close watch

Adjacent chart shows the price movement of MCX Natural continuous contract. Natural gas witnessed a decline towards 187 level post the channel breakdown. However, natural gas is in a pullback mode after forming a low of 187. Currently, it has broken above a 50% retracement level. Therefore, the pullback can extend higher towards 200.50 i.e. 61.8% retracement level where it can face stiff resistance. On the way down, the 20DMA will act as crucial support in the near term. If natural gas closes below 191.75 i.e. 20DMA, then a deeper correction is possible. Traders must keep a close watch as natural gas is approaching is crucial resistance levels. The daily momentum indicator is bullish.

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