Natural gas continues to climb inside its ascending channel, having recently bounced off the mid-channel area of interest to resume its broader uptrend.

Price pulled back to test the zero Fib level near $2.731, which lined up closely with the mid-channel support and the 100 SMA dynamic inflection point. That confluence of technical floors was enough to draw dip buyers back in, sparking a rebound that has since carried price back above the $2.800 handle.

The Fibonacci retracement tool, drawn from the latest swing low to swing high, shows where sellers previously stepped in and where buyers could aim next if the rally gains fresh traction.

The 38.2% level around $2.820 has already been tested and could act as a pivot, while the 50% level at $2.848 and the 61.8% level at $2.876 remain the next upside targets. A stronger push could even extend toward the 76.4% Fib at $2.910 or the 100% extension near $2.965, which lines up with the channel top.

On the moving average front, the 100 SMA has crossed above the 200 SMA, confirming that the path of least resistance is tilted to the upside. Price is also holding above both averages, which could continue to serve as dynamic support on pullbacks.

Stochastic is retreating from the overbought zone after a strong upswing, suggesting bullish momentum could be cooling off in the near term. Still, the oscillator has room to fall before reaching oversold territory, meaning any pullback could simply be another chance for dip buyers to join the trend.

RSI is also easing lower from elevated levels but remains above the midline, keeping the broader bias tilted higher. As long as the channel bottom and Fibonacci support zones hold, natural gas could resume its climb toward the upper Fibonacci extensions and channel resistance near $2.965.

Natural gas could continue to take cues from inventory data and weather forecasts, though dollar direction from the US core PCE release and Fed head Warsh’s Jackson Hole testimony could add volatility.