Natural Gas Futures: Downside looks limited

Pablo Piovano FXStreet

In light of advanced prints from CME Group for natural gas futures markets, open interest dropped by almost 25K contracts on Wednesday following two daily builds in a row. On the other hand, volume advanced for the third consecutive session, this time by around 70.5K contracts.

Natural Gas: Initial contention emerges around $5.60

Prices of natural gas dropped more than 10% on Wednesday soon after recording new 2021 highs near $6.50 per MMBtu. The sharp drop, however, was amidst shrinking open interest, hinting at the view that a sustainable downtrend remains out of favour for the time being. That said, the commodity faces some initial contention in the $5.65/60 band per MMBtu (mid-September tops).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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