Natural Gas Futures: Rebound in the offing?

Traders reduced their open interest positions by nearly 4.7K contracts on Friday following two consecutive daily builds, in light of advanced readings from CME Group. In the same line, volume went down for the second session in a row, this time by around 14.9K contracts.

Natural Gas could rebound to the $2.60 region

Friday’s drop in Natural Gas prices to multi-week lows around $2.25 MMBtu was amidst declining open interest and volume. Against this, the door is now open for a potential rebound to, initially, the 21-day SMA around $2.45 ahead of recent tops near the $2.60 mark per MMBtu.