Natural Gas Futures: Upside appears limited

According to advanced prints for Natural Gas futures from CME Group, traders trimmed their open interest positions by nearly 4.7K contracts, reaching the second session in a row on Monday. Volume, instead, went up by around 56.5K contracts, partially reversing the previous drop.

Natural Gas remains supported by the 200-day SMA

Natural Gas prices added to Friday’s gains at the beginning of the week. The uptick, however, was on the back of shrinking open interest, removing strength from the recovery and leaving the possibility of extra gains somewhat contained. In the meantime, the key 200-day SMA at $2.464/MMBtu continues to hold the downside for the time being.