Natural Gas Futures: Scope for extra gains

In light of preliminary readings from CME Group for natural gas futures markets, open interest rose for the third consecutive session on Friday, this time by nearly 6.5K contracts. In the same line, volume reversed the previous drop and went up by almost 68K contracts.

Natural gas now targets $3.72

Natural gas trades in levels last seen in January 2019 beyond the $3.50 mark peer MMBtu. Friday’s uptick in open interest and volume indicates that further upside remains on the cards in the very near term, although the current overbought condition of the commodity begs for some caution. On the upside, the next target of relevance now emerges at the 2019 highs around the $3.72 mark.