MCX natural gas, after a sharp rally, had nose-dived in February 2014. However, since April 2014 it has entered a pull-back mode, which has retraced 23.6% of the previous fall. The gas is getting support from its key daily moving averages. At these supports natural gas formed a bullish belt hold, a candle pattern, in the last session. Thus, the recent low of 280.70 will act as a crucial support. Unless that breaks on a closing basis natural gas can form a deeper retracement. The subsequent level on the upside will be the 38.2% retracement mark ie 310.
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