Natural Gas Futures: A deeper drop is not favoured

Open interest in natural gas futures markets shrank for the second straight session on Tuesday, this time by nearly 8K contracts in light of flash data from CME Group. On the other hand, volume went up for the second consecutive session, now by more than 72K contracts.

Natural Gas looks supported by the 200-day SMA

Tuesday’s downtick in prices of natural gas was against the backdrop of shrinking open interest, indicative that further weakness appears somewhat unlikely in the very near term. Against that, there is solid contention around the 200-day SMA, today at $4.352 per MMBtu.