CME Group’s advanced readings for Natural Gas futures markets noted open interest rose for the sixth session in a row on Wednesday, this time by around 8.1K contracts. On the other hand, volume reversed two consecutive pullbacks and went up by around 113.5K contracts.
Natural Gas Prices Forecast
The recovery in prices of Natural Gas extended the upside momentum on Wednesday, briefly testing the $1.90 neighbourhood amidst rising open interest and volume. Against this, the uptick in open interest allows for the continuation of the rebound, at least in the near-term.
In fact, Natural Gas met buying interest in the $1.77 region per MMBtu on Monday. Further upside is therefore expected to meet interim hurdle at Wednesday’s top near $1.90 ahead of the key $2.00 mark. On the downside, the $1.680 region could re-emerge on the horizon in case sellers regain the upper hand ahead of the 2020 low at $1.574 (April 2).
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