Natural Gas Futures: A deeper retracement looks likely

Open in natural gas futures markets extended the uptrend for yet another session on Tuesday, now by around 7.6K contracts according to preliminary readings from CME Group. Volume, in the same direction, rose for the second straight day, now by around 18.7K contracts.

Natural Gas could revisit the October low at $5.20

Tuesday’s marked decline in prices of the natural gas was against the backdrop of increasing open interest and volume, hinting at the idea that further losses could lie ahead in the very near term. In such a scenario, the next support of note is seen at the October low near the $5.20 level per MMBtu (October 24).