Natural Gas Futures: Correction overdue?

Open interest in natural gas futures markets went down for the second session in a row at the end of last week, now by more than 1K contracts according to advanced prints from CME Group. Volume followed suit and shrank by around 20.5K contracts.

Natural Gas looks to $4.10

The rally in natural gas prices extended further on Friday. The daily uptick, however, was amidst shrinking open interest and volume, noting the presence of short covering and suggesting the likelihood of a corrective move in the very near term. The latter view is supported by the current overbought condition of the commodity. On the upside, there is an interim target at the $4.10 mark per MMBtu.