Natural Gas Futures: Door open for extra downside

Open interest in Natural Gas futures markets extended the uptrend in place since November 5 and rose sharply by nearly 25.4K contracts on Monday. In the same line, volume went up by around 318.7K contracts after three pullbacks in a row.

Natural Gas risks further decline

Prices of Natural Gas breached the key $2.80 level per MMBtu on Monday amidst rising open interest and volume. Against this, a deeper pullback is likely in the short-term horizon with the next support at the 55-day SMA around $2.65/MMBtu.