Natural gas is still trending higher inside its ascending channel on the 1-hour time frame and seems to have bounced off support. Price could be heading back up to the channel top from here.

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. In that case, natural gas could recover to the top of the channel around $3.150 or the middle at $3.050.

The gap between the moving averages is also widening to reflect strengthening bullish momentum, and these could hold as dynamic support on dips.

However, stochastic is already nearing the overbought zone to reflect exhaustion among buyers. Turning lower would mean that sellers are about to take over and possibly lead to another test of support.

RSI has more room to climb, so buyers could stay in control for a bit longer.

Natural gas storage is up by 98 Bcf, according to the Department of Energy. This is slightly higher than the projected 95 Bcf figure but lower compared to the earlier 115 Bcf increase, reflecting a pickup in demand or dip in supply.

According to Christin Redmond, global commodity analyst for Schneider Electric’s Energy & Sustainability Services, “Weather has been overall supportive, coming out of the coldest winter for a couple of years, and this summer looks like it will also be quite hot.”

This could mean another seasonal wave of gains for natural gas in the coming weeks, as businesses increase purchases of cooling commodities.

In addition, risk-taking could also bring more gains for higher-yielding assets. However, an upside surprise in the upcoming US jobs report might bring back speculations of higher borrowing costs down the line, which would put a damper on business and consumer activity.