Natural gas futures have been on a rally for nearly three weeks, currently trading at ₹308.30 per mmBtu. This upward movement began following support observed at ₹274, leading prices above the neck level of a double bottom chart pattern at ₹300, indicating a potential bullish trend reversal.
The positive sentiment is further supported by the price of the contract surpassing both the 21- and 50-day moving averages. Analysts suggest that this double-bottom formation forecasts a rally toward ₹325, with expectations for natural gas futures to reach ₹350 in the near term, given the current momentum.
However, if the contract falters and drops below the support level at ₹300, immediate support can be found at ₹290. A breach of this level could lead to a deeper decline, potentially reaching ₹274, the nearest notable support.
Overall, the price action appears bullish, suggesting that traders should consider long positions.
Trade Strategy
Traders are advised to buy October natural gas futures at ₹308 and accumulate more at ₹295. An initial stop-loss should be placed at ₹282. If the contract reaches ₹325, the stop-loss can be adjusted to ₹310. Upon hitting ₹335, traders should tighten the stop-loss further to ₹328, with an exit strategy set at ₹340.
Published on October 3, 2025
