Natural Gas Futures: Further weakness not ruled out
In light of flash data from CME Group for Natural Gas futures markets, open interest dropped by just 678 contracts at the end of last week, partially reversing the previous’ day build. In the same line, volume shrunk markedly by around 178.3K contracts after two consecutive daily builds.
Natural Gas risks a deeper pullback below the 200-day SMA
Friday’s advance in Natural Gas prices was accompanied by diminishing open interest and volume, indicative that further upside looks limited and hinting at the idea that a breach of the 200-day SMA, today around $2.46, could spark extra losses to, initially, the $2.40 level per MMBtu.