Natural Gas Futures: Potential bounce in the pipeline

In light of advanced figures from CME Group for natural gas futures markets, open interest dropped for the second straight session on Tuesday, now by around 3.5K contracts. On the flip side, volume reversed two daily pullbacks and rose by around 102.3K contracts.

Natural Gas appears supported around $6.50

Tuesday’s downtick in prices of natural gas was in tandem with another drop in open interest, which hints at the idea that a deeper drop looks not favoured for the time being. In the meantime, the $6.50 region per MMBtu continues to support the commodity, an area reinforced by the 200-day SMA.