Natural Gas Futures: Potential correction near term

Pablo Piovano FXStreet

Open interest in natural gas futures markets shrank for the second session in a row on Thursday, now by nearly 7K contracts according to preliminary readings from CME Group. Volume, instead, remained erratic and rose by around 173.4K contracts.

Natural Gas: Initial hurdle comes near $2.90

Prices of natural gas rose markedly and approached the key $2.80 region on Thursday. The daily gains, however, were amidst diminishing open interest and hints at the idea that a correction could be in store for the commodity in the very near term. In the meantime, there is a solid up-barrier at the June peak of $2.878 (June 28) ahead of the March high at $3.02 per MMBtu (March 3).

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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