Natural Gas Futures: Further upside not ruled out

According to preliminary readings for Natural Gas futures markets from CME Group, open interest shrunk for the second session in a row on Tuesday, this time by around 10.2K contracts, the largest single day drop since March 26. In the same line, volume partially reversed the previous build and went down by around 12.3K contracts.

Natural Gas still targets $2.90

Tuesday’s downtick in Natural Gas prices was amidst shrinking open interest and volume, showing that the leg lower appears somewhat contained and exposing the probability of the resumption of the upside in the short-term. That said, the next hurdle of note remains at the $2.90 mark per MMBtu.