Natural Gas Futures: Rebound could lose traction

Open interest in natural gas futures markets extended the downtrend and shrank by just 169 contracts on Wednesday, noted preliminary readings from CME Group. On the other hand, volume resumed the uptrend and went up by around 53.4K contracts, partially offsetting the previous drop.

Natural Gas remains supported around $7.50

Prices of natural gas edged higher once again on Wednesday, although the move was amidst shrinking open interest and a moderate increase in volume. That said, while the rebound could extend further in the very near term, it could also start to run out of steam. Looking at the recent price action, occasional bearish moves in the commodity should face decent support around the $7.50 mark per MMBtu.