CME Group’s flash data for Natural Gas futures markets noted open interest decreased for the third session in a row on Tuesday, this time by around 178K contracts. On the other hand, volume extended the choppy activity and went up by nearly 12.8K contracts.
Natural Gas Prices Forecast
Tuesday’s drop in prices of Natural Gas to fresh multi-week lows was in tandem with shrinking open interest and erratic performance in volume, hinting at the idea that a deeper pullback would not be favoured in the short-term horizon.
That said, Natural Gas broke below the 55-day and the 100-day SMAs in past sessions, allowing for further decline to levels last seen in late April. Against this, the next target on the downside emerges at the 2020 lows in the $1.57 area. On the other hand, the $1.90 region emerges as the next barrier ahead of the key $2.00 zone.