Natural Gas Futures: Further retracement not ruled out

Traders scaled back their open interest positions by almost 10K contracts at the end of last week, retreating for the second session in a row considering advanced prints from CME Group. Volume followed suit and shrank by around 49.4K contracts, partially reversing the previous daily build.

Natural Gas remains capped by $4.20

Friday’s bullish attempt in prices of natural gas to the $3.95 area lacked follow through and ended the session with small gains amidst shrinking open interest and volume. That said, the door now seems open to a potential corrective downside in the very near term. On the other hand, the uptrend in the commodity remains limited by the $4.20 region for the time being.