Natural Gas Futures: Selling bias appears alleviated

Considering advanced prints from CME Group for natural gas futures markets, open interest shrank by more than 21K contracts at the beginning of the week, reversing the previous daily build. On the other hand, volume went up by around 109.2K contracts after two consecutive daily drops.

Natural Gas looks supported by the 200-day SMA

Prices of natural gas extended the leg lower on Monday and revisited the 200-day SMA around $4.20, where also sits the 200-day SMA. The daily drop was on the back of shrinking open interest, which is indicative that a deeper pullback looks out of favour for the time being.