January 29, 2023

Potential for further gains near term

In light of preliminary readings for natural gas futures markets from CME Group, open interest extended the choppy activity and rose by just 705 contracts at the beginning of the week. On the other hand, volume shrank for the second session in a row, this time by nearly 2.3K contracts.

Natural Gas looks to test the 200-day SMA

Prices of natural gas charted decent gains at the beginning of the year. The move was on the back of rising open interest and leaves the door open to potential extra gains with the next target at the key 200-day SMA, today around the $4.00 mark per MMBtu.

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