Natural Gas Futures: Scope for a near-term knee-jerk

Considering advanced prints from CME Group for natural gas futures markets, open interest shrank for the 5^th consecutive session on Tuesday, now by around 9.5K contracts. On the other hand, volume left behind two consecutive daily pullbacks and rose by around 68.7K contracts.

Natural Gas: Immediately to the upside comes $2.80

Tuesday’s uptick in prices of natural gas was on the back of shrinking open interest, which hints at the idea of a corrective move in the very near term. Looking at the broader picture, prices of natural gas seem to have embarked on a gradual recovery since early April. Against that, the next target now emerges at the weekly high near $2.80 per MMBtu seen on July 20.