Natural Gas Futures: Further gains appear on the cards

Open interest in natural gas futures markets increased for the second straight session on Thursday, now by around 4.2K contracts considering advanced prints from CME Group. Volume, instead, remained choppy and went down by nearly 19K contracts.

Natural Gas now looks to $3.50

Prices of natural gas recorded new 2021 highs beyond the $3.40 mark on Thursday. The move was on the back of rising open interest, signalling that further gains remain in the pipeline in the very near term. Against that, the next target of note emerges at the $3.50 mark per MMBtu. However, the current overbought conditions carry the potential to spark a corrective move in the short-term horizon.