Natural Gas Futures: Downside seen limited

Considering flash data from CME Group for natural gas futures markets, open interest shrank by around 10.2K contracts after fourth daily builds in a row on Thursday. In the same line, volume dropped by around 36.8K contracts, partially offsetting the previous build.

Natural Gas looks propped up by the 200-day SMA

Natural gas dropped markedly and almost fully faded Wednesday’s sharp advance on Thursday. The move, however, was against the backdrop of diminishing open interest and volume, leaving the prospect for further weakness somewhat curtailed. That said, the 200-day SMA around the $4.05 level per MMBtu continues to offer decent contention for the time being.