In light of advanced figures from CME Group for natural gas futures markets, open interest dropped by around 14.6K contracts on Tuesday, reversing the previous daily build. Volume, in the meantime, rose by around 102.6K contracts after two consecutive daily retracements.

Natural Gas still targets $7.00 and beyond

The rally in natural gas remains well and sound. Tuesday’s advance, however, was on the back of diminishing open interest, leaving the door open to a probable corrective move in the very near term. This view appears reinforced by the current overbought conditions of the commodity.