In light of flash figures for Natural Gas futures markets from CME Group, open interest shrunk for the third day in a row on Wednesday, now by around 18.1K contracts. Volume, in the same direction, reversed two builds in a row and went down by nearly 120K contracts.
Natural Gas Prices Forecast
Wednesday’s negative price action in futures of the MMBtu of Natural Gas was amidst diminishing open interest and volume, hinting at the likeliness that further declines appear somewhat contained for the time being.
Wednesday’s bullish attempt to the $1.90 neighbourhood and subsequent close into the negative territory sparked a correction lower which should meet initial support around the 55-day SMA, today at $1.763. Further south emerges the monthly lows in the $1.60 area. The resumption of the upside is expected to face strong barrier at the $2.00 mark seconded by the 200-day SMA at $2.121.
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