Natural Gas: Corrective downside on the cards

Considering advanced figures from CME Group for natural gas futures markets, open interest shrank for the second session in a row, this time by around 5.7K contracts on Monday. Volume followed suit and went down for the second straight session, now by more than 34K contracts.

Natural Gas now looks to $8.30

Prices of natural gas continues to navigate extreme overbought levels. The commodity reached new cycle tops on Monday further north of the $8.00 mark per MMBtu, although the move was against the backdrop of shrinking open interest and volume. That said, a correction is long overdue, while further gains now target the September 2008 high around $8.30.