Natural Gas Futures: Scope for a deeper correction

Traders increased their open interest positions in natural gas futures markets marginally on Tuesday, extending the uptrend for yet another session according to advanced figures from CME Group. In the same direction, volume reversed three consecutive daily pullbacks and rose by around 79.8K contracts.

Natural Gas stays capped by $3.80

Prices of natural gas failed once again around $3.80 and closed Tuesday’s session in the negative territory. The move was accompanied by increasing open interest and volume, leaving the door open for extra decline in the very near term. On the upside, there is a tough resistance around the $3.80 mark per MMBtu.