By Akhil Nallamuthub
Copyright thehindubusinessline
Natural gas futures (September), which rallied over the last couple of sessions, is currently trading at ₹273 (per mmBtu).
The price action of continuous natural gas futures contract since the final week of July shows the formation of an inverted head and shoulder pattern. But this chart set up will be confirmed only if the neck level at ₹278 is breached.
A rally past ₹278 will open the door for a rally to ₹328, as per the pattern. But there are hurdles at ₹300 and ₹310 before that.
On the other hand, if the contract falls off the resistance at ₹278, the pattern may remain invalid. In this case, the price might drop to ₹258, a potential support. Subsequent support is at ₹245.
Overall, the chart shows that natural gas futures is attempting a bullish trend reversal but there is one last barrier.
Trade strategy
We suggested short on natural gas futures at ₹273 with a stop-loss at ₹285 for a target of ₹230. Although there are some positive signs now, the resistance at ₹278 is still valid. So, traders can retain this trade.
That said, if the stop-loss mentioned above is triggered, it could be an indication of a bullish trend reversal. In this case, buy natural gas futures. Target and stop-loss can be at ₹325 and ₹268.
Published on September 17, 2025
