Natural Gas Futures: Outlook appears neutral/bearish near-term

CME Group’s flash readings for Natural Gas futures markets noted open interest rose for the second straight session on Tuesday, this time by nearly 12K contracts. Volume, instead, shrunk by almost 66.2K contracts, partially reversing the previous build.

Natural Gas Prices: Rebound from 2-month lows

Prices of the commodity dropped to fresh multi-week lows around $1.67 on Tuesday. The downtick was amidst rising volume and diminishing open interest, leaving the neutral/bearish stance unaltered in the very near-term.

On the broader scenario, YTD lows in the $1.60 region emerge as the next relevant contention in case the bearish sentiment picks up pace. On the other hand, any serious recovery is expected to meet interim hurdle at the 100-day SMA at $1.852 and the 100-day SMA at $1.878, all ahead of monthly tops in the $1.90 neighbourhood.