Natural Gas Futures – Swing Buying SetupNatural Gas Futures – Swing Buying Setup
Instrument: **Natural Gas Futures (MCX)
Timeframe: Daily
1️⃣ Strong Support Zone Holding
Price is holding above a major demand zone around 230–250.
Reasons this zone is important:
Previous multi-month base
Strong historical buying interest
Multiple price rejections
This suggests institutional accumulation near support.
2️⃣ Bullish RSI Divergence
A bullish divergence (DIV) is visible on Relative Strength Index.
Structure:
Price made lower lows
RSI made higher lows
This indicates:
➡ Selling momentum is weakening
➡ Buyers may start gaining control
Divergence often appears before trend reversal or strong bounce.
3️⃣ Volume Expansion at Bottom
Increasing volume near the support zone suggests:
Accumulation phase
Smart money entering positions
This supports the reversal probability.
Upside Targets
If price sustains above 290–300, the next resistance zones are:
Target 1:
➡ 330
Reason:
Previous swing resistance
Target 2:
➡ 390–400
Reason:
Major supply zone
Prior breakdown level
Trade Setup
Entry Zone
➡ 280 – 300
Stop Loss
➡ Below 245
Targets
T1: 330
T2: 390 – 400
Risk–reward becomes roughly 1 : 3+ if momentum continues.
Long
