Natural Gas Futures: Upside lacks conviction

Open interest in natural gas futures markets shrank for the sixth session in a row on Wednesday considering preliminary readings from CME Group. On the other hand, volume reversed three consecutive daily pullbacks and rose by around 147.6K contracts.

Natural Gas faces initial support around $3.80

Prices of natural gas flirted with 2-week highs around $4.40 on Wednesday. The uptick, however, came in tandem with shrinking open interest, which opens the door to a probable corrective move in the very near term. Occasional bearish moves, in the meantime, should meet initial contention around the $3.80 region per MMBtu.