Natural gas MCX Feb contract opened slightly down at 201.3 vs. previous close of 201.5 made the same level as an intraday high and last traded at 198.5 down by 3 rupees after it made an intraday low at 197. Natural gas future prices are likely to rise on bargain hunting and could test 207-211 levels within next few trading days.
As per EIA report released on Thursday, Natural gas inventory levels reached to 2353 billion cubic feet (bcf) for the week ended on 28th January, 2011 decreased by 189 bcf which look supportive for the Natural gas future prices. Positional traders are advised to buy on dips.
Technically, range for Natural gas is from 193-211. 14 days RSI for NCDEX Natural gas Feb contract is at 45 levels and it shows natural gas prices are trading sideways.