The MCX Natural Gas price has exhibited a strong downtrend, moving from 316 to 236 levels. The recent negative close below the neckline of the "Head & Shoulder" chart pattern, coupled with bearish signals from the MACD, reinforces the prevailing downtrend. A break below the 235 level could further intensify the decline, potentially reaching 220 and 2010 levels in the near term. However, resistance at the 260 level could signal a trend reversal if breached. The price indicator remains bearish, supporting the overall downward trend.
Here's a detailed analysis of the MCX Natural Gas price movement:
The MCX Natural Gas price has been in a relentless downtrend, with the price action indicating a further decline. The price has broken below the neckline of the "Head & Shoulder" chart pattern, which is a bearish reversal pattern. This breakdown, accompanied by a negative close, suggests that the downtrend is likely to persist.
The MACD, a momentum indicator, also confirms the bearish sentiment. The MACD line has crossed below the signal line, forming a bearish crossover. This crossover indicates that the downward momentum is gaining strength.
Furthermore, a break below the 235 level could trigger a further decline, potentially reaching 220 and 2010 levels in the near term. These levels represent significant support zones that have held the price in the past.
However, if the price manages to hold above the 235 level, it could signal a potential trend reversal. The key resistance level to watch is 260. A break above this level could indicate a shift in sentiment and the start of an upward move.
Overall, the MCX Natural Gas price remains trapped in a strong downtrend. The price action, chart patterns, and technical indicators all point to further downside potential. Traders should exercise caution and monitor the price closely to identify potential reversal signals.
