In light of advanced prints from CME Group for Natural Gas futures markets, open interest rose for the second straight session on Monday, now by just 192 contracts. Volume, in the same direction, increased by nearly 13.3K contracts for the second session in a row.

Natural Gas Prices: Room for a re-test of June’s low

Natural Gas prices failed to test/surpass the $1,80 mark at the beginning of the week, ending the session with moderate losses against the backdrop of rising open interest and volume. That said, extra losses now appear on the cards, with the immediate target at monthly lows at $1,675 per MMBtu.

On the broader scenario, if the selling pressure gathers pace, YTD lows in the sub-$1.60 region could emerge as the next relevant contention, while any serious recovery is expected to meet interim hurdle at the 100-day SMA at $1.85 and the 55-day SMA at $1.88, all ahead of monthly tops in the $1.90 neighbourhood.