Technical rebound in the offing?

Considering advanced prints from CME Group for natural gas futures markets, open interest increased for yet another session on Thursday, this time by nearly 13K contracts. Volume, on the other hand, went down by around 104.3K contracts after three consecutive daily builds.

Natural Gas could bounce on oversold conditions

There is no respite in the downtrend of natural gas prices. Thursday’s negative price action came in tandem with another increase in open interest, leaving the door open to the continuation of the underlying bearish trend. However, the current oversold conditions of the commodity (as per the RSI around 25) could spark a technical bounce in the short term.