Natural Gas Futures: Pullbacks look shallow

Investors trimmed their open interest positions in Natural Gas futures markets for the third consecutive session on Friday, this time by around 12.1K contracts in light of advanced readings from CME Group. In the same line, volume went down by nearly 24.5K contracts, reaching the second pullback in a row.

Next target at the 200-day SMA around $1.93

Friday’s negative price action in Natural Gas was amidst shrinking open interest and volume, leaving the prospects of further downside somewhat capped in the short-term horizon. That said, the next target of relevance on the downside emerges at the $1.93 region per MMBtu, coincident with the 200-day SMA.