Natural gas recently broke above the neckline of its double bottom pattern on the 1-hour time frame, suggesting that a reversal from the slide is due.

The 100 SMA also crossed above the 200 SMA to confirm that bullish pressure is picking up. Price is trading above both indicators, so these could hold as dynamic support on dips.

The chart pattern spans around $0.100 so the resulting climb could be of the same size, taking natural gas to $3.100 next.

However, stochastic is already in the overbought zone to signal exhaustion among buyers, so turning lower would mean that sellers are returning. In that case, a pullback to the broken neckline could follow.

RSI has a bit more room to climb before reflecting overbought conditions and turning lower, so there could be more gains in the cards until that happens.

Natural gas got a strong boost from forecasts of higher temperatures since this could bring stronger demand for cooling commodities. Recall that the heating commodity took a hit on warmer weather recently, but another seasonal pickup could be in the works during the summer months.

Inventory data from the Department of Energy could also bring in some volatility for the commodity in the coming days, as a draw in stockpiles would reflect the increase in demand. On the other hand, a large build could mean some downside for the commodity price.

Risk-taking could also push commodities around throughout the week, especially with investors looking ahead to the US NFP release on Friday. Another miss in employment could bring risk-off flows back in since it would cast doubts on the recovery in the US economy.

Then again, a jobs disappointment could mean that the Fed would take longer than expected to taper and tighten, which might then lift riskier assets.