Natural Gas Futures: Further Upside Momentum Could Lose Traction

Editor • Feb 27, 2023 at 4:08 AM EST

Prices of natural gas extended the rebound on Friday. However, the move was against the backdrop of shrinking open interest and volume, suggesting that the ongoing bounce could be short-lived.

Considering advanced prints from CME Group, open interest in natural gas futures markets shrank by around 1.8K contracts on Friday, keeping the choppiness well in place for the time being. In the same line, volume dropped for the second consecutive session, now by around 104.7K contracts.

Natural Gas: Next on the upside comes $3.20

Prices of natural gas extended the rebound on Friday. However, the move was against the backdrop of shrinking open interest and volume, suggesting that the ongoing bounce could be short-lived. So far, further upside should meet the next hurdle at a Fibo retracement of the December-February drop near the $3.20 mark per MMBtu.

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