Natural gas is starting an uptrend, as it moves above a rising trend line on its 1-hour chart. Price looks ready for another test of the support zone where more buyers could sustain the climb.

The Fibonacci retracement tool shows that the 61.8% and 50% levels are closest to the trend line around $2.950 while the 38.2% level is near the $3.000 major psychological support. If any of these are able to keep losses in check, natural gas could recover to the swing high at $3.088 or higher.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to gain traction than to reverse. The moving averages are also near the trend line to add to its strength as support.

Stochastic is still heading lower to show that sellers are in control and that the correction could keep going for a bit longer until oversold conditions are met. Turning higher would signal that sellers need a break and could let buyers take over.

RSI has more room to head lower before reaching the oversold region, so a deeper pullback could follow. A break below the trend line, however, could suggest that a short-term selloff is due.

Natural gas is drawing support from forecasts of warmer temperatures, as this could shore up demand for cooling commodities. The upcoming inventory report from the Department of Energy should provide more insight on whether or not seasonal factors are already boosting purchases of the commodity.

In addition, risk appetite would likely impact natural gas price action, especially with the NFP coming up. This US jobs report might influence Fed tapering expectations, which then affects business sentiment and activity.

Strong data could spur speculations of tightening and higher interest rates soon, which might dampen appetite for higher-yielding assets like commodities.