Natural Gas Futures: Room for further correction

Considering advanced prints from CME Group for natural gas futures markets, open interest resumed the downtrend and went down by 940 contracts on Tuesday. In the same direction, volume shrank by around 33.5K contracts, partially reversing the previous daily build.

Natural Gas could still retest $4.80

Tuesday’s positive price action in natural gas was amidst declining open interest and volume and allows for the resumption of the recent downtrend in the very near term. That said, natural gas could slip back to the initial contention area around the $4.80 mark per MMBtu in the short-term horizon.