Natural gas futures has been charting a sideways trend for over a month. The May futures has largely been trading between ₹250 and ₹275. Prior to that, the contract saw a decline.

That said, the price action since early April shows that the bears are showing signs of weakness. In fact, the chart has started showing signals that natural gas futures is forming an inverted head and shoulder. However, for the pattern to confirm, the contract has to break out of ₹275.

In case natural gas futures breaks out of ₹275, the outlook can turn positive. The confirmation of the pattern will open the door for a rally to ₹300. A breakout of ₹300 will add momentum to the upside, potentially rising to ₹320.

However, if the contract falls off the resistance at ₹275, it can drop to ₹250. A breach of this can extend the downtrend to ₹230 and ₹200, notable support levels.

Overall, as it stands, natural gas futures will have a bearish inclination, though with lesser strength now. But the breakout of ₹275 will overturn the trend.

Trade strategy

Hold on to the natural gas futures we suggested at ₹265. Target and stop-loss can be ₹235 and ₹280.

If the contract hits the above stop-loss, it will indicate the confirmation of an inverted head and shoulder pattern. In this case, one can go long with stop-loss at ₹260 for a target of ₹320. 

Published on May 11, 2026