CME Group’s preliminary data for Natural Gas futures markets noted open interest reversed three consecutive daily pullbacks and increased by almost 18K contracts. On the other hand, volume receded for the second day in a row, now by around 125.6K contracts.
Natural Gas Prices Forecast
The continuation of the downtrend in prices of the MMBtu of the commodity looks supported by increasing open interest. 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 monthly lows in the $1.80 zone 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.