On Tuesday, open interest fell about 14.6k contracts on the back of CME Group’s advanced reading for the natural gas futures markets, reversing the previous day’s build-up. Meanwhile, volume increased by around 102.6k contracts after two consecutive daily retracements.
Natural gas still aims for $7.00 and above
The rally natural gas stay alive and well. However, Tuesday’s surge was due to waning open interest, leaving the door open for a likely corrective move in the very near future. This view appears to be reinforced by the commodity’s current overbought conditions.
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