Natural Gas Futures: Probable correction near term

Considering preliminary readings from CME Group for natural gas futures markets, open interest extended the uptrend for yet another session on Wednesday, this time by around 10.6K contracts. In the same line, volume rose for the second straight session, now by around 6.4K contracts.

Natural Gas in overbought levels

Prices of natural gas rose to fresh 2022 highs near $6.40 on Wednesday, although it later faded that spike and ended the session with modest losses. The move was amidst rising open interest and volume, indicative of further downside in the very near term. The latter is reinforced by the overbought conditions of the commodity, as per the daily RSI above 74.