Natural Gas Futures: Probable consolidation near term

According to preliminary readings from CME Group for natural gas futures markets, traders scaled back their open interest positions by more than 5K contracts on Friday. In the same line, volume dropped by around 27.5K contracts after two consecutive daily builds.

Natural Gas appears capped by $8.50

Prices of natural gas charted an inconclusive session on Friday amidst shrinking open interest and volume, leaving the door open to some range bound theme in the very near term. On the upside, in the meantime, the commodity is expected to meet resistance around the $8.50 mark per MMBtu.