Natural Gas - Tomorrow's CrudeOil ??

The Nifty broke the crucial 4990 ... And that too on a weekend... At least the suspense is diluted! I presume now most of the traders and investors are 'deciding' their next moves....

Recently I read an altericle on 'alternative fuel for the future' and one of the conclusions was that since Crude Oil is relatively costly, Natural Gas has the potential for eating away Crudeoil's market share in the energy space...

Well, earlier there was a high positive correlation between Crude and NatGas which was recently (past 2 years) violated. Even when Crude rose, Nat Gas had been falling... So now if Crude is 'not rising' will NatGas rise ? ?

That promtped me to check the price behaviour of NatGas. It seems NatGas prices are changing their trend.



From the recent downward trend of the past one-and-half year, the trend is clearly changing on upside. The long term MAs too are suggesting trend change. While my long term RSI (not shown here) is already in buying mode...

I shall not be surprised if NatGas price shoots up towards Rs 310 initially and then to Rs 360/- on the MCX !!

Happy trading !

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.