Natural Gas Futures: A deeper pullback looks out of favour

In view of advanced prints from CME Group for natural gas futures markets, open interest went down for the fourth consecutive session on Wednesday, this time by more than 8K contracts. In the same line, volume reversed two daily builds in a row and shrank by nearly 188K contracts.

Natural Gas appears contained near $4.75

Wednesday’s important retracement in prices of natural gas was in tandem with shrinking open interest and volume, which suggests that a sustainable leg lower is not favoured for the time being. That said, the commodity faces initial support near the $4.75 mark per MMBtu, while the 2021 high past $6.30 (September 28) continues to cap the upside.