Natural gas is moving sideways between support around $2.290 and resistance at $2.785. Price is closing in on the resistance and might be due for a bounce back to the bottom.

The 100 SMA is above the 200 SMA, though, so the path of least resistance is to the upside. In other words, there’s a chance that the range resistance could break. If that happens, natural gas could climb by the same height as the rectangle pattern. Price is als

Stochastic is turning lower, though, so there could be a return in selling pressure from here. This might be enough to take natural gas back to the range support or at least until the middle at $2.500.

RSI is also on the move down from the overbought zone to show that sellers are taking over while buyers are exhausted. Both oscillators have plenty of room to head south before reaching the oversold region to signal that sellers need a break.

Natural gas are enjoying some upside leading up to the release of the inventory data from the Energy Information Administration, as another draw in stockpiles might be reported. Expectations are for a 147 Bcf draw in stockpiles, according to survey provider Estimize.

A larger than expected reduction could mean more gains for natural gas as it would signal sustained demand while a surprise build could lead to losses.

Meanwhile, weather agencies predict that temperatures could drop in the coming week, which could mean sustained demand for heating commodities. Risk-taking on account of the vaccine rollout all over the world is also keeping commodities supported.

The FOMC refrained from making any changes to interest rates or asset purchases, citing that policy could remain unchanged for much longer. This could provide some support for businesses and consumers, which in turn would be good for fuel and commodity demand.