Natural Gas Futures: Further retracements seem unlikely

Considering advanced prints from CME Group for natural gas futures markets, open interest shrank by almost 3K contracts after two consecutive daily builds on Tuesday. Volume, on the other hand, went up by around 181.4K contracts after three daily drops in a row.

Natural Gas faces interim support near $2.58

Prices of natural gas dropped markedly on Tuesday amidst the sharp rejection from last week’s tops around the key $3.00 mark per MMBtu (August 9). The strong decline was accompanied by a drop of interest rate, which removes some strength from the deep sell-off. In the meantime, the commodity is expected to face provisional support at the 55-day SMA near $2.58.