Natural gas continues to trend higher, moving above a rising trend line on its 1-hour chart. Price is bouncing off support and could be setting its sights on the upside targets marked by the Fibonacci extension tool.

Price is at the 38.2% Fib around $3.690 but might still have enough bullish momentum to climb to the 50% extension at $3.719 or the 61.8% level at $3.748, which lines up with the swing high. Stronger bullish pressure could take it up to the 76.4% level at $3.784 or the full extension at $3.483.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break. The gap between the indicators is also widening to reflect strengthening bullish momentum.

Stochastic has yet to reach the oversold region but is already turning higher, hinting that buyers are eager to return. RSI is also pulling higher to show a return in bullish pressure.

Natural gas might be in for more gains, as the Department of Energy is slated to report another draw in stockpiles. After all, warmer weather conditions have been observed in the past week, likely lifting demand for cooling commodities.

A larger than expected draw could send natural gas up to the bullish targets while a surprise build could spur a break lower and possible reversal from the climb.

The upcoming NFP release would likely impact commodity price action as well since it affects Fed policy expectations.

Strong data could spur expectations of tapering soon, which might then bring risk-off flows back and weigh on natural gas prices. On the other hand, another downside surprise could keep risk-taking in play as traders anticipate a longer period of low interest rates and easy monetary policy.