Natural Gas Futures: Rally has extra legs

In light of advanced prints for natural gas futures markets from CME Group, open interest rose for the fourth consecutive session on Monday, this time by around 32.4K contracts. In the same line, volume went up for the second straight day, now by around 26.4K contracts.

Natural Gas now looks to $3.70 and above

The rally in natural gas prices remains well and sound and is expected to run for longer on the back of the persistent increase in open interest and volume. That said, the next hurdle of note emerges at the 2019 highs beyond the $3.70 mark per MMBtu (January 15). However, current overbought conditions of the commodity could open the door to some corrective move in the very near term.