Natural Gas Futures: Scope for further upside

Open interest in natural gas futures markets rose by more than 2K contracts after two daily drops in a row on Tuesday, according to preliminary readings from CME Group. In the same line, volume went up for the second consecutive day, now by around 9.1K contracts.

Natural Gas: Next on the upside comes $7.60

Tuesday’s continuation of the weekly upside in natural gas prices was amidst rising open interest and volume, which is indicative that further gains remain in the pipeline in the very near term. Against that, the commodity still faces the next up barrier at the November high at $7.60 per MMBtu (November 23).