Natural gas futures have breached a critical technical support level, opening the door for further downside pressure.
The breakdown marks a decisive shift from the sideways consolidation that had characterized the market in recent sessions, suggesting that selling momentum is accelerating.
The breach of the nearest notable support level indicates that the recent 12% weekly decline may not be over.
On India’s Multi Commodity Exchange (MCX), the July contract is trading at ₹263/mmBtu, while the August contract sits at ₹268/mmBtu.
With the July contract set to expire on Tuesday, July 28, market participants are increasingly focused on the August contract for directional signals.
The breach of the nearest notable support level indicates that the recent 12% weekly decline may not be over.
This technical deterioration follows a period of uncertainty where the contract had previously stalled, showing signs of a short-term rally before succumbing to selling pressure.