Natural Gas Futures: Corrective downside likely near term

Preliminary readings from CME Group for natural gas futures markets noted open interest extended the uptrend for yet another session on Monday, this time by around 20.6K contracts. On the other hand, volume shrank by around 83.6K contracts after three consecutive daily builds.

Natural Gas in 2022 highs

Prices of natural gas traded on the defensive on Monday amidst rising open interest, allowing for a potential decline in the very near term. This view is reinforced by the current overbought condition of the commodity. The moderate drop in volume, however, could still lend legs to the rally, which continues to target the ley $6.00 mark per MMBtu.