Monday’s negative price action in natural gas was on the back of shrinking open interest, which hints at the idea that a deeper decline is not favored for the time being.
Open interest in natural gas futures markets shrank by just 599 contracts on Monday, keeping the erratic performance well in place for yet another session. On the other hand, volume went up for the second session in a row, this time by nearly 120K contracts.
Natural Gas: Near-term top around $3.00
Monday’s negative price action in natural gas was on the back of shrinking open interest, which hints at the idea that a deeper decline is not favored for the time being. The acute build in volume, however, reinforces the current bearish outlook for the commodity. On the upside, the $3.00 mark per MMBtu should offer decent resistance for the time being.
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