Natural Gas Futures: Scope for further upside
|In light of advanced readings from CME Group for Natural Gas futures markets, open interest rose by around 4.2K contracts on Friday, reversing the previous drop. Volume followed suit and rose by nearly 30.5K contracts after three builds in a row.
Natural Gas Prices: Target is now at the $1,90 region
Natural Gas prices extended the bounce off sub-$1,70 lows at the end of last week, all amidst rising open interest and volume. That said, further upside looks increasingly likely, with the next target at the $1,90 region.
On the broader scenario, YTD lows in the sub-$1.60 region emerge as the next relevant contention in case sellers return to the market, while any serious recovery is expected to meet interim hurdle at the 100-day SMA at $1.85 and the 55-day SMA at $1.88, all ahead of monthly tops in the $1.90 neighbourhood.
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