In light of advanced figures from CME Group for Natural Gas futures markets, open interest extended the choppy activity and shrunk by almost 1.3K contracts. In the same direction, volume receded for the third consecutive session, this time by around 97.5K contracts.
Natural Gas Prices Forecast
The door for the continuation of the leg lower remains open following Friday’s uptick, all against the backdrop of shrinking open interest and volume. That said, the next support of relevance emerges at the monthly lows in the sub-$1.80 region for the time being.
Prices of Natural Gas are now flirting with the 55-day SMA in the $1.86 region amidst the broader bearish scenario. Further south emerges the May’s low at $1.787 ahead of late April lows around $1.70. The resumption of the upside is expected to face strong barrier in recent peaks around the $2.00 neighbourhood seconded by April’s tops near $2.10.