Near-term fundamentals are bearish for Natural Gas
as cooling days have started to fall and cash is below futures. But, upcoming winter season might be different as thanks to fallen production, inventory will be less than in 2018. Export capacity has increased so in September-end, we might see more export from US to Mexico which will push inventory low and prices higher. So near-term, we may see pullback but, in coming months, we are bullish. Below 182, we can see prices falling till 177-175, so any long position should be exited below 182.
Sell Crude oil | TGT: 2,800 | Stop loss: 3,200
has breached its range of 3,130-3,230 with volumes. Range breakdown is confirmed as price is below 50 DMA, something not seen since May 2020. RSI_14 is below 50 which again confirms bearish nature of crude. We expect crude oil to test 2,800 levels, so we recommend short with expected target of 2,800 and stoploss of 3,200 on a closing basis.
Sell Zinc | TGT: 190 | Stoploss: 199.50
Zinc has made ‘Bearish belt hold’ candlestick formation at the top end of the range. There is negative divergence on daily scale in RSI_14 which again suggests loss of momentum on the upside. Zinc has been taking support at its 20 DMA since April 2020 and, currently, 20 DMA comes around 192-191. We expect Zinc to again test the support of its 20-DMA, so we are recommending short with target of 190 and stoploss of 199.50