Natural Gas Futures: Potential correction near-term

Traders increased their open interest positions by around 7.5K contracts at the end of last week, halting a downtrend in place since October 15 in light of flash data from CME Group. On the other hand, volume went down by around 51.7K contracts, partially reversing the previous sharp increase.

Natural Gas met resistance near $3.40/MMBtu

Prices of Natural Gas appear to have met strong hurdle in the $3.40 level per MMBtu. Friday’s uptick to fresh 2020 highs was amidst rising open interest amidst the broader downtrend. That said, while extra gains should not be ruled out, a correction lower remains long overdue.