Considering preliminary readings from CME Group for natural gas futures markets, open interest reversed two consecutive daily builds and dropped by around 4.7K contracts on Wednesday. In the opposite direction, volume rose by around 59.3K contracts after three daily pullbacks in a row.
Natural Gas looks supported near $3.60
Prices of natural gas breached the key 200-day SMA around $4.10 on Wednesday, extending the leg lower after last week’s peaks near $4.90 per MMBtu. The move was in tandem with diminishing open interest, which removes strength from a deeper pullback in the very near term. The commodity is expected to meet support in the $3.60 area, or December 2021 lows.
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