Natural gas hits a stumbling-block

As can be seen from the chart, MCX Natural Gas has rallied smartly. It has been marching towards north in a channelised manner. However, it has recently hit a stumble block. It made an attempt to cross the previous high of 217.20; however, it couldn’t sustain there. The daily momentum indicator has given a fresh sell signal. Thus natural gas has a potential to form a double top pattern. Once the lower channel line (211) is broken, natural gas can fall till 204.5-198. The downside potential remains intact as long as the recent high of 218.90 holds on a closing basis.