Natural Gas Futures: Further losses in the pipeline

Considering advanced reading from CME Group for natural gas futures markets, open interest went up by around 2.6K contracts on Friday, resuming the uptrend following the previous day’s retracement. Volume, instead, shrank for the second session in a row, this time by around 15.6K contracts.

Natural Gas now approaches the 200-day SMA

Prices of natural gas extended the leg lower on Friday in tandem with increasing open interest, opening the door to further retracement with the immediate target at the 200-day SMA around the $4.20 per MMBtu. The decline in volume, however, could slow the pace of the move.