Natural Gas Futures: Upside looks unabated so far

Investors added around 30.7K contracts to their open interest positions in natural gas futures markets on Wednesday, as noted by advanced figures from CME Group. On the other hand, volume shrank by around 99.5K contracts following three consecutive daily builds.

Natural gas faces interim target at $3.80

The rally in natural gas prices appears well and sound for the time being. Rising open interest coupled with positive price action allows for extra gains in the short-term horizon. Recent tops around $3.80 per MMBtu emerge as the next resistance, although current overbought condition of the commodity warns of a potential corrective downside.