Natural Gas Futures: Further decline not ruled out
|Advanced prints from CME Group for Natural Gas futures markets noted traders added nearly 2.5K contracts to their open interest positions on Friday, following two consecutive daily drops. On the other hand, volume partially reversed the previous sharp build and shrunk by around 14.5K contracts.
Natural Gas: Decent support seen around $2.70/MMBtu
The selling pressure around natural gas remains contained by the $2.70 region for the time being. Friday’s negative price action was amidst rising open interest, which is indicative that a move lower is still possible in the very near-term. Against this, there is a solid contention area in the $2.40 level per MMBtu, where coincides the 2021 low (January 22) and the 200-day SMA ($2.422).
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