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Natural Gas: Showing Bullish Potential

This is the daily chart of #NaturalGas MCX which has closed at 202.30.

Observation: recent #corrective move had taken place in a #falling #wedge formation which later resulted in a #bullish breakout. Recently this commodity is attacking at #psychological ceiling near 202 and at the same time it has established a move above 10 days SMA  which is also sloping upward suggesting a bullish environment for this commodity. Staying long can be a good #strategy as long as price manages to hold above 10 days #SMA which stands near 193. #MACD is near centre line and price stability above 193 will bring a positive cross on this indicator which will confirm bullish trend and momentum for coming days. Approaching winter season will also be a supporting factor for bullish expectations.

Assumption: Dips towards 198-196 can be used for longs with stop of 193 for targeting 212-217-228 in near term .

Hints: I have used trend line to observe market structure. 10 days SMA is used to observe trend and MACD indicator is used to get further confirmation for development of fresh bullish momentum.

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