There is a possibility that the Momentum of Further Upside for Natural Gas Futures will Weaken

EnclaveFX Ltd
Feb 27, 2023

As a result of advanced prints from CME Group, the open interest in natural gas futures markets decreased by more than 1.8K contracts on Friday, and it seems the market's choppiness will remain in place for the time being. The volume of the same line dropped by around 104.7K contracts for the second consecutive session in the same direction.

There is a possibility that natural gas will rise to $3.20 within the next few months

It's unclear whether the ongoing rebound in natural gas prices will last since open interest and volume are shrinking, suggesting that the trend may be short-lived. In the meantime, further upside is likely to run into a Fibo retracement near $3.20 per MMBtu, which is the next hurdle for further upside.


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